Refinance available for new capital projects under SBA 504

SBA 504 loans provide 40% of total project cost in second mortgage position for businesses acquiring, renovating their own facility (minimum 51% occupancy). Under the American Recovery & Reinvestment Act, effective June 23, businesses can now include refinance of some existing debt in their new projects. Up to 50% of the new project cost can be dedicated to refinancing as long as it will result in a lessening of debt payments. There must be sufficient equity in the project to support all parts of the financing package. This will be particularly helpful for small businesses who already own a building or commercial condo/coop and want to renovate or expand. They will now be able to use the equity in their facility to lower the cost of existing loans. Roslyn Goldmacher is the president and CEO of the Long Island Development Corp. (LIDC) and the Greater New York Development Co. (GNYDC), Bethpage, N.Y.