Changes
to the U.S. Small Business Administration’s 504 Certified Development
Company loan program will enable small businesses eyeing expansion to
refinance existing loans used to purchase real estate and other fixed
assets. The changes were authorized in the American Recovery and
Reinvestment Act of 2009.
The SBA’s 504 loan program can be used to purchase business real estate or fixed assets, such as heavy equipment or machinery, and to expand current development projects. The changes allow 504 program projects to include a limited amount of debt refinancing if there is a business expansion and the debt refinanced does not exceed 50% of the projected cost of the expansion. “Expansion” includes any project that involved the acquisition, construction or improvement of land, buildings or equipment used by the small business.
More information on the 504 loan program and eligibility requirements is available at recovery.gov and sba.gov/recovery.
