Mercantile Capital Corporation Now Offers SBA 504 Financing to Refinance Commercial Mortgages

Altamonte Springs, FL, March 17, 2011 --(PR.com)-- Mercantile Capital Corporation, a wholly owned subsidiary of Old Florida National Bank, now offers an opportunity for select commercial property owners to refinance their property, for the first time ever at below-market, long-term, fixed interest rates using U.S. Small Business Administration (SBA) 504 loans.

Part of the Small Business Jobs and Credit Act which was signed into law last fall, this program went into effect on Feb. 28, 2011, and is initially aimed at small businesses facing balloon payments on or before Dec. 31, 2012. Once initial demand is satisfied, it is expected that the SBA will open the program to other small businesses that will realize a substantial cash flow benefit from the program. Debt may be refinanced even if it does not meet the job creation or other economic development objectives traditionally associated with SBA 504 loans.

"Our new SBA 504 refinancing option brings real relief to many small business owners facing the stress of ballooning or high rate commercial loans," said Chris Hurn, Cofounder and CEO of Mercantile. "The 504 Loan Program currently has rates around 6 percent fixed for 20 years for the SBA portion of the loan, so the program has the potential to save business owners thousands of dollars in interest expense annually."

The loan structure for this refinancing program mirrors the traditional 504 loan structure. A third-party, conventional lender, like Mercantile, funds not less than 50 percent of the project costs, the SBA 504 loan funds not more than 40 percent and the borrower funds not less than 10 percent, which doesn’t necessarily need to be cash with these new refinance provisions.

Loans being refinanced must have been current for the past year and debt to be refinanced must have been incurred over two (2) years prior to the date the application is received by the SBA. The company also must have been in business for two years prior to the submission of the application.

Additional information about Mercantile's new SBA 504 refinance program is available by calling (866) 622-4504, visiting www.SBA504LoanRefi.com, or visiting www.YouTube.com/504LoanExperts.

###