Refinancing Program Championed by Pasadena-Area Congresswoman Will Fuel Small Business Growth

Small business owners, Councilmember Andy Wilson and media joined Representative Judy Chu, D-Pasadena, for a press conference Friday to celebrate and explore the Small Business Administration’s (SBA) new 504 refinancing program and to learn how they can take advantage of it to free up more capital for growth and job creation.

Chu’s Commercial Real Estate and Economic Development (CREED) Act was incorporated into a 2016 federal spending bill, permanently extending what had been a successful pilot program that allowed thousands of small businesses to swap expensive, existing debt for lower cost financing.

“For the past two Congresses, I have introduced legislation to make this successful program permanent because I knew that it would free up critical capital for small business owners, which would lead to more jobs and more growth in our area and around the country,” said Representative Judy Chu at a press conference gathering inside the offices of Pasadena’s Ayzenberg Group; a recipient of the 504 loan.

The SBA’s 504 refinancing program was originally a short-term pilot program enacted in 2011 as part of the Recovery Act, and expired on September 27, 2012. In that short period of time, over 2,700 businesses refinanced nearly $7 billion in old, expensive debt, according to a press release.

Chu was joined by SBA Deputy Chief of Staff Isabella Guzman, Founder/President of AmPac Tri State Certified Development Company Hilda Kennedy , Chief Finance Strategist at the Ayzenberg Group Edgar Davtyan.

“It’s a big deal. To be able to tap into this program speaks volumes for the city because businesses here look for this program as well. This is our home and we want to stay and thrive here. I think we are a prime example of what this program can do,” said Davtean about the importance of SBA 504 and the benefits it has provided the Ayzenberg Group.

Hilda Kennedy described the progress the SBA has made and how the new program reflects its mission in today’s climate.

“The fact is that the SBA has developed to become ladders of growth,” said Kennedy. “More businesses can access more capital with low down payments and interest rates, which makes a big difference for a small business.”

Rep. Chu introduced the Commercial Real Estate and Economic Development (CREED) Act in May 2015 which would extend the 504 refinancing program for five years. In December of 2015, language from Rep. Chu’s CREED Act was included in the FY 2016 omnibus spending bill to permanently extend the 504 refinancing program.

“Entrepreneurs and small business owners, I know that access to capital is one of the biggest obstacles to growth. In fact, a shocking 80% of small business loan applications are rejected. But the 504 refinancing program, finally signed into law as a permanent program, will help to fix that by allowing business owners to refinance old, expensive commercial loans at today’s low interest rates, freeing up much needed money,” said Chu.

Chu ended with a reminder that education and awareness of the 504 refinancing program will ultimately make the biggest impact in getting business on board.

“Spreading the word about this program and how to take advantage of it is key to continuing the economic recovery and helping more entrepreneurs turn their ideas into successful realities,” said Chu.