{"id":85396,"date":"2024-09-30T23:49:03","date_gmt":"2024-09-30T23:49:03","guid":{"rendered":"https:\/\/pakistaninewspaperlist.com\/news\/biden-harris-administration-finalizes-rule-to-lower-costs-for-small-businesses\/"},"modified":"2024-09-30T23:49:03","modified_gmt":"2024-09-30T23:49:03","slug":"biden-harris-administration-finalizes-rule-to-lower-costs-for-small-businesses","status":"publish","type":"post","link":"https:\/\/pakistaninewspaperlist.com\/news\/biden-harris-administration-finalizes-rule-to-lower-costs-for-small-businesses\/","title":{"rendered":"Biden-Harris Administration Finalizes Rule to Lower Costs for Small Businesses"},"content":{"rendered":"
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WASHINGTON, Sept. 30, 2024 (GLOBE NEWSWIRE) — Today,\u00a0Administrator Isabel Casillas Guzman<\/b><\/a>, head of the U.S. Small Business Administration (SBA)<\/b><\/a> and the voice in President Biden\u2019s Cabinet for America\u2019s more than 34 million small businesses, announced a new rule that will make it easier for small business owners to refinance debt using the SBA 504 Loan Program<\/a><\/b>, empowering them to reduce their debt payments and\/or access more affordable capital for expansion or growth. This will lower costs for many small businesses that are supported by the 504 Loan Program, which provides long-term, fixed rate financing for real estate and equipment with SBA-backed capital. <\/p>\n

This action comes on the heels of the Federal Reserve\u2019s September Rate Cut, which is already lowering borrowing costs for small businesses. In the SBA\u2019s 7(a) Loan Program<\/a><\/b>, the agency\u2019s other flagship capital access program, an estimated 200,000 borrowers will see their monthly payment on their variable-rate loan automatically drop by 0.5%, starting this month. Those reduced monthly payments will translate into approximately $360,000,000 in yearly savings for 7(a) borrowers. As President Biden said<\/a><\/b> earlier this month, \u201cThis is a moment [\u2026] for business to feel greater confidence to invest, hire, and to expand.\u00a0 It\u2019s a moment for individuals to feel greater confidence buying a home, a new car, starting a family, starting a new business.\u201d<\/p>\n

\u201cThe Biden-Harris Administration is laser-focused on lowering costs for the American people, including the incredible small business owners who make this country run,\u201d said SBA Administrator Guzman.<\/b> \u201cCoupled with the recent Federal Reserve interest rate cut, which is already benefitting small businesses and SBA borrowers, SBA\u2019s new rule will help business owners lower costs by streamlining access to debt refinancing so they can reduce payments and access more affordable capital. Small businesses are the engines of our economy, and the Biden-Harris Administration is delivering remarkable progress to improve their bottom lines and help them continue to fuel America\u2019s historic economic recovery and Small Business Boom.\u201d<\/p>\n

The 504 debt refinance direct final rule is officially released today and becomes effective on November 14, 2024. <\/p>\n

504 Updates Resulting from the Direct Final Rule:\u00a0 <\/b><\/p>\n

With this direct final rule, the SBA has amended regulations governing the 504 Loan Program for debt refinancing with expansion<\/b> (for small business owners seeking to refinance their existing loans while also using loan proceeds to expand their business) and debt refinancing without expansion<\/b> (for small business owners seeking to refinance their existing loans). \u00a0These changes will streamline the loan application process and expand eligibility criteria for small businesses borrowers. With few exceptions, most types of small businesses are eligible to access SBA’s 504 Loan Program and may benefit from these recent program changes.<\/p>\n

The program changes include improvements that will: <\/p>\n