A push is on in Congress to reinstate a program that allowed small businesses to refinance commercial mortgages using government-backed funds.
Lawmakers have introduced bills that would restore the program, which enabled eligible small businesses with a mortgage that is at least two years old to refinance their obligation via the Small Business Administration’s Section 504 loan program regardless of the loan’s maturity date.
The program, which was one of several federal aid measures offered after the financial crisis hit, enabled borrowers to restructure real estate debt or tap equity in their property for business purposes.
It expired in September despite attempts by Sen. Mary Landrieu, D-La., who heads the Small Business and Entrepreneurship Committee, to extend it.
Landrieu introduced legislation in February with committee member Sen. Jeanne Shaheen, R-N.H., that would revive the program for five years. “Extending the 504 refi program is a common sense way to help small businesses and create jobs without costing taxpayers a single penny,” Landrieu said in a press release that accompanied the bill’s introduction.
Last week Rep. Judy Chu, D-Calif., a member of the House Small Business Committee, introduced a similar measure that has attracted eight co-sponsors.
