The U.S. Small Business Administration will begin accepting applications Feb. 28 for a commercial mortgage refinancing program.
The program is aimed at mitigating the effects of lower real estate values on small businesses and was authorized under the Small Business Jobs Act, passed in September.
Because of declines in real estate value, small businesses that are doing well and making payments on time are facing mortgage refinancing troubles, the SBA said in a statement.
Loans under the program follow the same terms as the 504 loans commonly offered through the SBA but with one difference: An expansion of the business is not required to qualify.
The program will be in effect through Sept. 27, 2012, but initially only businesses with balloon payments due before Dec. 31, 2012, will be able to qualify. Payments due after that date could become part of the program at a later time.
