Refinancing with SBA 504 Loans - As reported in today's New York Times: A small step that doesn't go far enough.
22 commentsJune 26th, 2009 | 01:36 pm
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"Chris has a tremendous talent for listening to and communicating with people. Unlike any other loan experience, either business or personal, Chris actually made the process almost seem enjoyable." - Tim Saunders |
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June 26th, 2009 | 01:36 pm
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So where will we be next?
June 26th, 2009 at 2:24 pm
Chris,
The 504 is definitely a good program. What I am not sure if you are aware of is the fact that many banks are faced with having to call loans on good paying borrowers due to the fact that they need to meet reserve requirements.
I have a program which will help with this challenge, but am having difficulty getting audience with the right people with either The American Banker's Association or directly with members of Congress or The Senate.
I am obviously curious to see what your idea to help promote the 504 program. Perhaps if we can work together we can make both our ideas come to fruition.
Best Regards,
Michael Sabler
June 26th, 2009 at 3:08 pm
Can you do ARC loans? I agree with you completely with regard to the 504 loans. Where does the USDA fit in with all of this?
June 26th, 2009 at 3:42 pm
Congrats!
June 26th, 2009 at 3:42 pm
Good job Chris. I was on the call with Mills announcing the program. I stated it is a good move but the SBA must move forward with allowing SBA 504 refi"s without restrictions on expansion. Chris Crawford agreed and said NADCO is working on it. Later in the day ABA called me and interviewed me. Attached is the article American Banker wrote.
Let"s keep after this and maybe something will get done that is desperately needed.
June 26th, 2009 at 3:43 pm
U are the best thank u so much.
June 26th, 2009 at 3:43 pm
Congratulations, Chris
I just happen to get Friday"s NY Times each week so I look forward to reading your contribution.
June 26th, 2009 at 3:44 pm
Congratulations Chris!
June 26th, 2009 at 3:44 pm
Chris, the only people I know who wind up in th NYT are either Liberal or getting married or in Obit column.
Not very good choices.
That being said good advertisement for a conservative person and MCC.
June 26th, 2009 at 3:45 pm
Congrats, Chris.
June 26th, 2009 at 3:45 pm
Thank you Chris.
June 26th, 2009 at 3:46 pm
Chris..I will read it asap…Congratulations on the exposure!..Sally, my wife, is a small business owner and will be interested, also…Stay well!…Lee
June 26th, 2009 at 3:47 pm
Hey Chris,
Congrats! That is really awesome!!
June 26th, 2009 at 3:47 pm
I agree with your comments.
June 26th, 2009 at 4:17 pm
Great comments Chris. We have a need to get financial help to our small business owners so that our economy can get back on track. Expanded SBA lending guidelines could be a very important component if done thoughtfully.
June 26th, 2009 at 4:58 pm
What no one seems to be talking about is, how to do this without the large pre-payment penalty that is imposed on the debenture piece of the deal. I would have to assume that any business that does a 504 deal today would have a fixed rate debenture that is lower than one taken out several years ago. So how do you address the investor ( holder of the debenture )who is looking to maintain his yield of say 7-8 % on his 504? We have tried on several occassions to refinance the bank's portion to add additional debt to it, and most times were not successful getting the CDC 504 guys to allow for the new additional debt to go ahead of their 2nd mortgage, although it made perfect ecomonic sense in terms of saving the borrower some interest costs and debt service.
June 26th, 2009 at 8:18 pm
I'll have to do some studies on this, Chris. I've used our own money to grown Creating Divine Order and am going to need more funding to grow. BTW, I've brought on a Director of Operations as well as our Director of Marketing so I'm wondering how I'm going to pay their salaries. It is a scary time to move forward…my word "scary", however, is an indicator that I'm responding from the fearful feelings of my childhood. Having grown up in a family of 8 children with a single mother at the helm we always worried about whether there was going to be enough money.
That points again to my need to research and be prepared to use resources that do exist.
Thanks for sharing your wisdom and experience,
Ann
June 29th, 2009 at 8:09 am
So excited!
June 29th, 2009 at 8:10 am
Congratulations Chris!
June 29th, 2009 at 8:12 am
I do pretty well with 7A loans, but I have been discouraged from using the 504"s by the various banks I"ve worked with in the past. For the most part the complaint has been the SBA underwriting as opposed to the bank underwriting. There are a lot of opportunities for using the 504 program IF we can re-fi debt and expand the business at the same time. I am thinking specifically about doctors, veterinarians, and dentists… let me know what you think. I"m finishing a 7A now for $2MM and when that is done I can move on to the next project.
June 29th, 2009 at 8:13 am
Good article Chris. Thanks for speaking out with the facts.
June 30th, 2009 at 10:05 am
Congrats on the pub Chris!
August 26th, 2009 at 12:11 pm
As of August 26, exactly 12 ARC loans have been closed in Colorado, and w/ the further obstacles the banks have all thrown in the path of this program, it is not likely there will be any more.
This has been nothing but a photo op for politicians to pretend once again that they are helping small businesses.
A big part of this problem is that there is no small business advocacy in Washington. The SBA "serves" every business w/ less than 500 employees, which includes 99.97% of all businesses in America. With that kind of scope, do we really think the SBA is paying attention to true small businesses under 50 employees? Under 20?