Lenders in northern Nevada last week were looking through their portfolios of commercial real estate loans in search of borrowers who might benefit from a new Small Business Administration loan refinancing program.
The program allows refinancing of so-called "SBA 504" loans, which provide financing for real estate and equipment.
The agency has said it will focus the first round of the program on borrowers who face loan maturities or balloon payments before the end of 2012. Borrowers must be current with their payments.
Further rounds of the program might be open to borrowers who don't face the same urgency to nail down refinancing, SBA officials said.
Refinancing of up to 90 percent of appraised value, or 100 percent of the outstanding principal on an existing SBA 504 loan, is available.
Borrowers can't use the money to expand their businesses and can't take cash out of the deal. The loans to be refinanced must have at least two years of repayment history.
Adrien Burney, a senior vice president in Reno with Nevada State Development Corp., a major SBA 504 lender, said it's likely that several dozen borrowers in northern Nevada could benefit from the refinancing program.
But because the program is limited the SBA has set aside $7.5 billion a year nationwide for the next two years Burney said it's important that borrowers get in touch quickly with their lenders or Nevada State Development Corp.
Brian Wallace, a business development officer with Nevada State Development Corp., said, "We are projecting that these funds will go very quickly."
Loan applications will be accepted starting today.
