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Increase to the Consumer Price Index spells inevitable rate hikes in 2022

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Providing possible answers, Liberty SBF is in the unique position of being able to work with the Government-sponsored Small Business Association (SBA), which means the lender can use this partnership to offer flexible loan options when floating rates start to rise.

Cohen and Liberty SBF are encouraging borrowers and investors to switch to Government-sponsored SBA fixed-rate loan options now, ahead of the predicted new year rate hikes. To achieve this seamlessly, Liberty SBF has set up a team to work with commercial real estate investors when refinancing into these low fixed-rate mortgage options.

“We are identifying borrowers now who can refinance when we are at the bottom of the rate cycle. We need to take advantage of this opportunity before the rates go up,” Cohen explained.

He went on to outline that “the SBA subsidizes two types of loan programs. One is called 7a and the other is called the 504. A lot of borrowers use 7a loans which are floating-rate loan options to build properties and, until recently, didn’t have the option for refinancing because they used a subsidized high-leverage loan.”

That was then and this is now. Cohen pointed out that, thanks to a recently passed Government rule change, commercial investors and real estate borrowers can now “refinance SBA debt into SBA debt”.



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