WASHINGTON — Small businesses seeking to expand will be able to refinance existing loans used to purchase real estate and other fixed assets as a result of permanent changes to the U.S. Small Business Administration’s (SBA’s) 504 Certified Development Company loan program. The changes were authorized in the American Recovery and Reinvestment Act of 2009.
The permanent changes will allow small businesses to restructure eligible debt to help improve their cash flow. The 504 loan program can be used to purchase business real estate or fixed assets such as heavy equipment or machinery and expand current development projects.
The 504 loan program is administered through 271 Certified Development Companies across the nation. SBA has begun implementation of the changes by publishing them as a permanent rule in the “Federal Register.”
For more information on the 504 loan program and eligibility requirements, go to www.recovery.gov or www.sba.gov/recovery.