Congress Passes NADCO-Supported Program In Omnibus Bill

The following is a recent NADCO press release regarding debt refinance.

WASHINGTON, Dec. 18, 2015 /PRNewswire-USNewswire/ — The National Association of Development Companies (NADCO) congratulates Congress for passing the year-end omnibus, which permanently reinstates a popular debt-refinancing element to the SBA’s 504 loan program. This action will create jobs, allow small businesses to refinance debt, and let them re-focus on growing their businesses.

The bill, originally introduced to the House and Senate as the Commercial Real Estate and Economic Development (CREED) Act, permanently reinstates a program that existed for 16 months between 2011 and 2012, and helped more than 2,300 small businesses refinance $5 billion in debt. When the program “sunset” in 2012, it left 400 businesses in the pipeline awaiting approval as it expired.

“I’m glad we have been able to work in a bipartisan way to address one of the biggest challenges facing small businesses – getting access to credit so they can reach their full potential,” said Sen. Jeanne Shaheen (D-NH), ranking member of the Senate Small Business Committee. “I’m particularly grateful to my colleagues for working with me to pass the CREED Act, which will finally re-instate the SBA’s successful 504 Refi program to help small businesses grow and create jobs. Now that our legislation is on track to become law, this program will soon be up and running, helping small businesses thrive. Small businesses are the backbone of our economy and I’m very pleased that they will soon have this option for accessing affordable credit.” Sen. Shaheen, along with Sen. Johnny Isakson (R-GA), introduced the CREED Act in the Senate.

NADCO, the trade association for Certified Development Companies (CDCs) that make these loans, says the new product is valuable for expanding the program mission. “Debt refi is a fantastic tool to help CDCs in their economic development work. We are pleased Congress has brought back this valuable program,” said Claire O’Rourke, Vice President of Government Relations at NADCO.

“Extending 504 refinancing has been a top priority of mine throughout my time in Congress, and so I am thrilled that the language from my bill, H.R. 2266, has been included in the omnibus bill,” said Rep. Judy Chu (D-CA), who introduced the CREED Act in the House. “To meet our job creation goals, we must put more capital in the hands of job creators. Reinstating the SBA’s successful 504 refinancing program will do that by helping small business owners refinance billions of dollars in old debt at no cost to the taxpayer. This is a benefit to the entire economy. Now owners can focus their resources on hiring employees and growing their businesses.”

The passage is a result of bipartisan cooperation led by the House Chairman Steve Chabot (R-OH) and Ranking Member Nydia M. Velázquez (D-NY) from the House Small Business Committee, along with Senate counterparts Chairman David Vitter (R-LA) and Shaheen from the Committee on Small Business and Entrepreneurship.

“Letting small firms refinance debt through SBA’s 504 program will give them greater flexibility, freeing up their resources so they can grow stronger and create new jobs,” said Velázquez. “This is also important for CDCs, who now will have certainty when it comes to offering such a refinancing option to their small business clients.”

Sen. David Vitter (R-LA) said, “As chairman of the Senate Committee on Small Business and Entrepreneurship, I was glad to report out the extension of the 504 refinance program earlier this year on a bipartisan basis. Once the program is implemented by the SBA, I look forward to conducting strong oversight to ensure that this initiative meets its intended goal of reducing debt costs so that entrepreneurs have more money to create jobs and grow their businesses.”

For more information concerning the National Association of Development Companies, the SBA loan program or other small business success stories from NADCO-member institutions, contact Heather McNelis, NADCO director of marketing and communications at or (202) 349-0070 x19. An alternative point of contact is Rachel O’Sullivan of Vox Optima, LLC at or (760) 310-4146.


SOURCE National Association of Development Companies (NADCO)


Debt Refi Now Law

Today, a permanent 504 debt refinancing program became law. Many years of hard work by NADCO and our members went into this successful moment. It is a wonderful way to end the year.

There are still many months until the refi program can be used. During NADCO’s Annual Meeting, SBA estimated it would take a minimum of 4-6 months to issue the regulations and the forms needed to start the debt refi program again. As mentioned in the previous email on debt refi, Congress has added several additional restrictions on this iteration of refi. SBA will need to carefully analyze these changes, as well as reexamine the last refi program before issuing new regulations on this topic. NADCO is already working with SBA to help move this process along quickly, but particularly because this program is now permanent, it is imperative to get these regulations right.

For CDCs who also participate in the Community Advantage or broader 7(a) program, the omnibus appropriations bill which contained the debt refi provision also set the cap on 7(a) loans at $26.5 billion for FY16.

As a reminder, NADCO is closed for the holidays December 25 through January 1. We look forward to a great 2016 with all of you.

Thank you to all NADCO members who worked so hard to bring debt refi back. The letters, calls, stories, and trips to DC each made a difference and slowly penetrated the traditional inertia of Congress. Today’s success is a valuable reminder of the power of our economic development message and the strength of our industry when we work together.

©2015 National Association of Development Companies | 1725 Desales St. NW | Suite 504 | Washington, D.C. 20036

NADCO Debt Refi Update

A few minutes ago, Congress released the text of the omnibus bill which will fund the government for the remainder of FY16. It contains a provision which will permanently reinstitute the debt refinancing program.

This is a result of many hours of work by NADCO and its members, our congressional allies, and SBA, and a major victory for the CDC industry. NADCO has worked tirelessly to promote debt refi legislation and advance it through any and all available avenues. It is truly gratifying to see this result come from such extensive effort.

Congress has added a few additional caveats on debt refi in exchange for its return. The program can only be used in years that both standard 504 and the refi program are at zero subsidy. Additionally, a CDC’s 504 portfolio, by dollars, must be at least 50% standard 504 loans. Refi loans cannot make up a majority of the portfolio comprar viagra sin receta madrid. A waiver provision exists if SBA sees good cause for additional refi loans to be made.

While it is exciting to be included in the omnibus, this is not yet law. This bill still needs to pass through Congress and be signed by the President. We anticipate those votes will happen by the end of this week or early next week and are hopeful for their success. Please remember that if this does occur, SBA has said it will take AT LEAST 4-6 months to be able to restart this new version of the refinance program. NADCO will send a second message once the final congressional vote has occurred to report whether debt refi has been reinstituted.