The government shutdown is having repercussions in most corners of the financial markets. GeorgiaSBALoans.com discussed the impact of the federal government shutdown on the SBA 504 Lending community with Tim Souther, Executive Director of GA Resource Capital, one of the country’s leading Certified Development Companies.
GA Resource Capital is a Certified Development Company focused on providing Georgia’s small businesses with the capital they need to acquire fixed-assets at long-term fixed-rates. GA Resource Capital is in the top 10% nationwide and #1 in GA in dollar volume, and has the largest portfolio of outstanding SBA 504 loans of all Georgia based CDCs.
We have boiled the conversation down to three main points:
1) How does the current government shutdown affect current small business loan opportunities?
504 Loan approvals by the SBA came to a screeching halt with the government shutdown at the end of September. All loans not yet approved by the SBA at the start of the shutdown entered the SBA queue and all new applications submitted to the SBA will also be queued. Once the shutdown ends, all loans in the queue will be handled in the order they were received. E-tran, the SBA’s loan processing website, is still up and running. Fortunately, the government’s debt ceiling crisis doesn’t have to translate into a debt crisis for you.
2) What does this mean?
Although your fixed rate SBA 504 loan cannot receive an SBA authorization during the government shutdown, that is only a small part of what happens with your SBA 504 loan. For example, GA Resource Capital is still at work structuring, underwriting, packaging and submitting your loan for approval. If your 504 loan has already been approved through GA Resource Capital, they will continue to get your loan ready for funding once the government cranks up again. In short, it is business as usual (almost) for GRC borrowers.
3) What is the next step?
The SBA 504 program offers unique advantages including up to 90% financing with true fixed rate terms up to 20 years with no balloons. If you already have an SBA 504 loan in process, most everything should continue as usual. Your lender will tell you if there are any impediments to approval or closing on your particular deal due to the shutdown.
GeorgiaSBALoans.com is ready to guide you through the necessary steps to get you a below market fixed rate loan for your project. An SBA 504 loan is a long term investment in your business. Don’t let the government’s short term shutdown stop you from achieving your goals. Let us know how we can help you take the next step.
Do you know what makes the SBA 504 Loan program different from a standard commercial mortgage?
504 Loan Program Advantages:
- Up to 90% LTV saves on out-0f-pocket costs.
- Below-market, true FIXED interest rates, NO ARMS.
- Fully amortizing terms up to 20 years with no balloons.
- Associated fees and soft costs can be financed in the loan.
- Projects from $250,000 to $20 Million.
Eligible Use of Loan Proceeds:
- Buy land and construct new buildings or purchase existing real estate and improvements.
- Remodel, convert, expand or renovate existing building.
- Energy efficient “green” projects.
- Purchase of improvements (grading, utilities, landscaping, etc).
- Purchase and installation of long-life fixed machinery and equipment.
Tim Souther is the Executive Director of GA Resource Capital and can be reached at 770.865.4879
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