The Obama Administration authorized the U.S. Small Business Administration to alter its 504 loan program to allow small businesses to refinance any existing loans that were used to purchase real estate or equipment. These changes were made in effort to lower interest rates on the loans thus lowering payments to lenders.

The money that can be saved by making smaller payments to lenders must be used for expanding the business, however most small businesses aren’t interested in “expanding” at the moment; they appear to be more interested in just keeping their doors open! On the flip side of the coin, many others view these changes to the 504 loan program as an opportunity to buy real estate as opposed to renting.

Finding a lender that is participating in Small Business Association loan programs, may be tough as most of the banks dropped out of the SBA loan program last year. However, due to some modifications to the program, lenders are beginning to return.