• The National Association of Development Companies (NADCO) is the trade association for the nation's 270 Certified Development Companies (CDCs). CDCs are certified by the U.S. Small Business Administration (SBA) to provide financing to small businesses through what is called the SBA 504 loan program. Members are non-profit organizations that serve every state, as well as Puerto Rico and U. S. territories in the South Pacific.

• Chris Crawford is the president of NADCO. The organization is based in McLean, Virginia.

• NADCO is actively supporting the SBA 504 refinance program, a time-limited opportunity that is due to expire 9/27/12. This powerful program offers businesses the opportunity to refinance their small business loans and withdraw equity for working capital. The program offers lenders the opportunity to bring owner-occupied commercial real-estate portfolio back into regulatory compliance and reduce overall CRE portfolio concentrations.

FINANCING

• The 504 industry is responsible for financing more than $45 billion to about 130,000 of America's small businesses over the past 25 years. The total project amount funded has been over $112 billion in small business financing projects. With NADCO's support, the 504 program's loan authority is up from $400 million in 1991 to $7.5 billion in FY 2011.

REFINANCING

• Many small business owners are not aware that if they have a commercial business loan (non-SBA loan) they can refinance that loan at very low rates using the 504. For many small businesses, this has meant the difference between success and failure. However, this program is scheduled to end on September 27, 2012.

• Small businesses can SAVE money and time using the 504 refinance program. The 504 Refinance program allows small businesses to use excess equity to obtain working capital for eligible business expenses.

• The 504 refinance loan program is designed for small businesses that have outstanding commercial real estate and/or commercial real estate loans. Businesses can refinance up to 90% of the appraised value of available collateral.

• SBA estimates that as many as 8,000 businesses may participate in this 504 refinancing program during the current fiscal year, which will provide up to $7.5 billion in SBA-guaranteed financing leading to total project financing of almost $17 billion.

• The 504 refinance loan program enables small businesses to:

• Use excess equity to obtain working capital for eligible business expenses

• Lock in long-term, fixed-rate, low-interest commercial financing

• Help expand those businesses, create jobs and benefit consumers too

• Consolidate existing debt

• Finance eligible business expenses, saving working capital

Other benefits include:

• consolidate existing debt (balloon and/or high interest rate loans)

• lock in long-term, stable financing, reduce fluctuating expenses

• finance eligible business expenses, save needed cash-flow

• protect jobs and hire additional staff, supporting the local community

• include closing costs in the transaction, eliminating cash-flow drain