SBA 504 Loan - Now Could be the Time to Re-Fi, Find Out How the SBA Can Pay 6 months of Debt Service!

With interest rates flirting with record lows and the SBA offering an incentive to pay debt service of both the SBA and bank portion for 6 months, now could be THE time for you to consider refinancing existing debt. On this session, we are joined by Ashley Vannoy, Vice President with First Bank of the Lake. She provides a very informative discussion about this program and the urgent time-line to take advantage of the SBA debt payment incentive. However, as she explains, even without this incentive, with low rates (in the 3.5%-3.9%) a 25 year amortization period and 90% LTV, this is an awesome program that can greatly improve cash flow.

Here are the highlights for the SBA 504 loans:

• Owner occupied real estate
• Down payment of owner investment of 10%
• SBA loan portion of up to 40%
• Bank financing of the remaining 50%
• 10 year amortization period for bank portion
• 25 year amortization for SBA portion
• Prepayment penalty, which is reduced to 0 over first 10 years of loan

Check out this episode for the details plus information on the SBA 7A program.