Homeowners aren’t the only ones threatened by mortgage debt these days. Commercial property owners have found themselves upside down on properties with sinking values and vacant from renters. However, the U.S. Small Business Administration has refinancing program to help commercial property loan holders lower their payments and avoid foreclosure.
The government has stepped into the middle of the mortgage crisis in recent years in efforts to combat the problem and bring about a change in the industry. The SBA’s 504 refinancing program has been in effect since February of 2011, offering small businesses the opportunity to lock in rates as low as 4 percent. This program gives owner-occupied commercial properties the chance to manage their balloon-payment loans and secure a fixed, low rate on their commercial mortgage with little to no out of pocket costs.
While thousands of commercial property loan holders have been able to take advantage of this refinancing opportunity, time is running out. Set to expire at the end of the year 2012, the 504 refinancing program application deadline could terminate as early as September 27th of this year.