July 2022
Issue 61

Debt Refinance Program
and ALP Express Highlights

 

SBA 504 Effective Rates for July 2022

25-year5.11% / 5.12% Refi
20-year5.05% / 5.07% Refi
10-year4.97% / 4.99% Refi

Debt Refinance Program

The SBA 504 Debt Refinance Program is a great way to utilize the benefits of the SBA 504 Loan Program! The program is able to refinance small business fixed asset debt, both with or without expansion.

The SBA may approve a refinancing project with an eligible qualified debt. Qualified debt means that a commercial loan has:

  • Substantially all (85% or more) of the proceeds of the existing debt was used to acquire an *Eligible Fixed Asset(s), and the remaining amount (15% or less) was incurred for the benefit of the small business seeking refinancing; or
  • If the Eligible Fixed Asset(s) was originally financed through a commercial loan that was subsequently refinanced one or more times:
  • Substantially all (85% or more) of the proceeds of the original loan was used to quire an Eligible Fixed Asset(s) and the remaining amount (15% or less) was incurred for the benefit of the small business seeking the refinancing; and
  • The existing debt is the most recent refinancing of the original loan.

*Eligible Fixed Assets are one or more long-term fixed assets, such as land, building, machinery, and equipment, acquired, constructed, or improved by a small business for use in its business operations.

Reach out to one of our Business Development Officers to see if your loan can be refinanced!

ALP Express Program Highlights

SBA has just released their new Pilot Program, the ALP Express. This program will allow NWBDA to have more approval control over loans with gross debentures $500,000 and under, with much shorter turn around times. This includes the debt refinance loans as long as they are also under $500,000.

Below are some of the eligibility requirements for the new program:

  • Projects must be eligible for the regular SBA 504 Program financing 
  • Only projects where the SBA GROSS debenture is $500,000 or less (estimated Net Debenture of $484,000)
  • Requests for debenture increases may not exceed $500,000;
  • ALP Express submissions still require SBA eligibility determination, franchise review, environmental review, appraisal review, and historic property review.
  • If the project involves an exception to policy, it cannot be submitted via ALP Express.
  • Businesses that are the SBA High Default list cannot be submitted through the ALP Express Program. As of now, there are no businesses listed. We expect this list to be reviewed and released on an annual basis.

Reach out to one of our Business Development Officers to see if your loan can be an ALP Express Loan!

Eastern Washington/
Northern Idaho
Eric Sartell
esartell@nwbusiness.org
(509) 904-5169

Central Washington

Lisa Vincent
lvincent@nwbusiness.org
(509) 469-5040

Western Washington

Elizabeth Rusnak
erusnak@nwbusiness.org
(425) 286-6673

Western Washington

Mark Beppler
mbeppler@nwbusiness.org
(425) 505-3263

Willamette Valley, Central,
Eastern & Southern Oregon

Evan Heriot
eheriot@nwbusiness.org
(541) 228-5015

Southwestern Washington/
North Oregon
Jim Bright
jbright@nwbusiness.org
(360) 521-5704

Greater Portland Metro Area/
North Oregon Coast
Mike Miller
mmiller@nwbusiness.org
(503) 746-1805

June’s Loan Fundings

NWBDA funded 7 new
projects for the total amount
of $23,141,891

June’s Loan Approvals

NWBDA approved 4 new
projects for the total amount
of $25,006,500

In the month of June,
NWBDA helped
create 74 new jobs
in the local communities

info@nwbusiness.org
www.nwbusiness.org
(509) 458-8555
(800) 540-1748 (Toll Free)

Achieving BIG Dreams for SMALL Businesses