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Small business owners facing steep balloon payments on their commercial mortgages have a new option under a program the U.S. Small Business Administration announced Tuesday.

Those businesspeople may be able to refinance those loans at low rates under the SBA 504 Loan Program. SBA lender Mercantile Capital Corp. noted in a release that the new program can offer some property owners the opportunity — for the first time — to refinance at below-market, long-term, fixed interest rates under the 504 program.

The new loan, which was introduced as part of the Small Business Jobs and Credit Act signed into law last fall, takes effect Feb. 28. The program is initially aimed at small businesses facing balloon payments before or on Dec. 31, 2012. Debt may be refinanced even if it doesn’t meet economic development criteria previously required under SBA 504.

“This new refinancing option brings real relief to many small business owners facing the stress of high rate commercial loans,” Chris Hurn, Cofounder and CEO of Mercantile, said in a release. “The 504 Loan Program currently has rates at 6 percent for the SBA portion of the loan, so the program has the potential to save business owners thousands of dollars in interest expense annually.”

For more information from Mercantile Capital Corp., call (866) 622-4504 toll free or see the website at www.504Experts.com.