When Dave Denti set out to refinance his commercial real estate properties for his small business locations, he knew he was facing an uphill battle. But in just 60 to 75 days, Denti secured three loans totaling $3,531,740 from the U.S. Small Business Administration through Mercantile Capital Corporation (MCC).
Denti, not only refinanced three Max & Erma’s locations in Chillicothe, Findlay and Lancaster, Ohio, but he also reduced his yearly debt service from more than $800,000 to approx. $250,000.
Denti isn’t alone. The SBA 504 loan program offers small businesses up to 90 percent loan-to-value financing, with long-term below-market fixed interest rates and longer loan amortizations . These loans are given to qualifying businesses which own their own commercial property.
In October, the SBA 504 program revamped its regulations, allowing, for the first time ever, for small business owners to utilize loan funds for working capital costs. Since the SBA announced the new rules, droves of refinances have been filed, but the gates on the loosened restrictions are scheduled to close in September 2012. Businesses are out of luck if loans aren’t authorized by the summer.
For more information on the new SBA rules or to arrange an interview with Denti and an SBA 504 expert, contact Alexis Gray at 305-255-0035.
Posted by Suzanna
