Shaheen-Isakson Backed Small Business Lending Program to Be Implemented

(Washington, DC) – U.S. Senator Jeanne Shaheen (D-NH), the lead Democrat on the Senate Small Business and Entrepreneurship Committee, and U.S. Senator Johnny Isakson (R-GA) welcomed today’s announcement by the Small Business Administration (SBA) that it has published a rule for the implementation the “504 Refi” program. The 504 Refi program will allow small businesses to refinance existing qualified commercial real estate debt and help lower monthly mortgage payments. Last year, Shaheen and Isakson successfully included legislation, the Commercial Real Estate and Economic Development (CREED) Act, to re-instate the 504 Refi program in the end-of-year spending bill.

“The 504 Refi program has a successful record of helping small businesses lower their monthly mortgage payments, saving them money and helping them create jobs,” said Shaheen. “I’m glad the SBA has made good on our efforts from last year to re-instate this important program. As the lead Democrat on the Small Business Committee, I’ll continue to look for opportunities to improve access to capital for small businesses in New Hampshire and across the country.”

“Today is a great day for small businesses who will finally be able to access low, long-term interest rates to refinance their business property debt at no cost to the taxpayers,” said Isakson. “This is a win for small businesses, a win for local economies and a win for hardworking Americans who will benefit from this new rule being enacted. I was honored to work with my friend Senator Jeanne Shaheen to introduce this bipartisan, commonsense legislation.”

The 504 Refi program can be used to help small businesses lower monthly mortgage payments and rescue companies from ballooning loans and demand notes that threaten their existence as well as the jobs of their employees. For the short time the 504 Refi program was active, the SBA and its loan partners were able to help more than 2,300 small firms refinance $5 billion of small business debt. The program expired in September of 2012, despite a significant demand for this type of financing. On the last day of the program’s authorization, more than 400 businesses applied. 

The program is fully funded through participant fees.