Small Business Loans – More Companies Now Eligible For SBA 504 Loans

The Small Business Jobs and Credit Act of 2010 was recently passed by Congress, as a part of an overall strategy to develop small businesses, in order to spur economic recovery and improve the unemployment rate across America. The new act included many benefits for small businesses, such as the enhancement of the SBA 504 loan program, which provides government-guaranteed loans to small businesses in order to assist them to develop their businesses by purchasing equipment and expanding their facilities through the purchase, construction or renovation of commercial real.

The scope of the SBA 504 loan program was also expanded through this recent legislation, which has resulted in an increased number of small businesses across the US becoming eligible to take out these SBA 504 loans. Other enhancements to this loan program included the increasing of the amount of money that small businesses could borrow through the program, the approval of the refinancing of existing debts, as well as the extension of the fee relief for these loans, which will result in thousands of dollars in saving for borrowers.

The SBA 504 loans are provided to small businesses by Certified Development Companies (CDCs) across the US, and Chris Crawford, the President of the National Association of Development Companies (NADCO), which is the trade association for the nation’s CDCs, commented on the opportunity afforded by this new legislation to owners of small businesses: “The bottom line is that more small businesses now have an opportunity to invest in their own facilities or expand existing facilities using SBA 504 financing.  At a time when the commercial real estate market is depressed and property is more affordable, this is great news for many small business owners.”