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.
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