Comments on: Refinancing with SBA 504 Loans - As reported in today's New York Times: A small step that doesn't go far enough. http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php Find out breaking news for Mercantile Capital Corporation. Mercantile Capital Corporation provides SBA 504 Loans and other commercial real estate loans. They focus on providing 90% loan-to-cost financing for small to mid-sized business owners to purchase or construct commercial real estate. Mon, 15 Mar 2010 18:37:59 +0000 http://wordpress.org/?v=2.2.3 By: Chuck Blakeman http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1448 Chuck Blakeman Wed, 26 Aug 2009 17:11:34 +0000 http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1448 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? 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?

]]> By: Brad Serot http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1205 Brad Serot Tue, 30 Jun 2009 15:05:23 +0000 http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1205 Congrats on the pub Chris! Congrats on the pub Chris!

]]> By: Maureen Woodruff http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1202 Maureen Woodruff Mon, 29 Jun 2009 13:13:20 +0000 http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1202 Good article Chris. Thanks for speaking out with the facts. Good article Chris. Thanks for speaking out with the facts.

]]> By: John Pamer http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1201 John Pamer Mon, 29 Jun 2009 13:12:23 +0000 http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1201 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. 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.

]]> By: Ernesto http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1199 Ernesto Mon, 29 Jun 2009 13:10:25 +0000 http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1199 Congratulations Chris! Congratulations Chris!

]]> By: Kristina Donegan http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1198 Kristina Donegan Mon, 29 Jun 2009 13:09:37 +0000 http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1198 So excited! So excited!

]]> By: Ann Hutchens http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1196 Ann Hutchens Sat, 27 Jun 2009 01:18:30 +0000 http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1196 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 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

]]> By: Dennis Coy http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1194 Dennis Coy Fri, 26 Jun 2009 21:58:41 +0000 http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1194 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. 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.

]]> By: Ed Craine http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1193 Ed Craine Fri, 26 Jun 2009 21:17:18 +0000 http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1193 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. 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.

]]> By: Chuck Siegel http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1192 Chuck Siegel Fri, 26 Jun 2009 20:47:26 +0000 http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1192 I agree with your comments. I agree with your comments.

]]> By: Nick Holm http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1191 Nick Holm Fri, 26 Jun 2009 20:47:01 +0000 http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1191 Hey Chris, Congrats! That is really awesome!! Hey Chris,

Congrats! That is really awesome!!

]]> By: Lee http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1190 Lee Fri, 26 Jun 2009 20:46:26 +0000 http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1190 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 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

]]> By: Mark Bounds http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1188 Mark Bounds Fri, 26 Jun 2009 20:45:49 +0000 http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1188 Thank you Chris. Thank you Chris.

]]> By: Luke Wickham http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1187 Luke Wickham Fri, 26 Jun 2009 20:45:16 +0000 http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1187 Congrats, Chris. Congrats, Chris.

]]> By: Gene Josephs http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1186 Gene Josephs Fri, 26 Jun 2009 20:44:48 +0000 http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1186 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. 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.

]]> By: Dane Basham http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1185 Dane Basham Fri, 26 Jun 2009 20:44:13 +0000 http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1185 Congratulations Chris! Congratulations Chris!

]]> By: Barry Rothstein http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1184 Barry Rothstein Fri, 26 Jun 2009 20:43:44 +0000 http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1184 Congratulations, Chris I just happen to get Friday’s NY Times each week so I look forward to reading your contribution. Congratulations, Chris

I just happen to get Friday"s NY Times each week so I look forward to reading your contribution.

]]> By: Linda Popp http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1183 Linda Popp Fri, 26 Jun 2009 20:43:06 +0000 http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1183 U are the best thank u so much. U are the best thank u so much.

]]> By: Joe Arie http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1182 Joe Arie Fri, 26 Jun 2009 20:42:42 +0000 http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1182 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. 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.

]]> By: Bob Coleman http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1181 Bob Coleman Fri, 26 Jun 2009 20:42:04 +0000 http://www.504experts.com/blog/refinancing-with-sba-504-loans-as-reported-in-todays-new-york-times-a-small-step-that-doesnt-go-far-enough.php#comment-1181 Congrats! Congrats!

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