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Rep. Chu Introduces Small Business Owners to New Access to Capital Program

August 26, 2016

PASADENA, CA – Today, Rep. Judy Chu (CA-27) hosted a press conference and presentation to introduce local small business owners to the Small Business Administration’s (SBA) new 504 refinancing program. Dozens of small business owners joined Rep. Chu, Isabella Guzman, SBA Deputy Chief of Staff, Hilda Kennedy, Founder/President of AmPac Tri State Certified Development Company, and Edgar Davtyan, Chief Finance Strategist at the Ayzenberg Group, a recipient of a 504 loan, at today’s event, which was held at the Ayzenberg Group offices. At the discussion, small business owners received an introduction to this program and details on how they can take advantage of it to free up more capital for growth and job creation. Rep. Chu, the Ranking Member of the Small Business Committee’s subcommittee on Access to Capital, released the following statement:

“I am thrilled to be able to celebrate the start of the Small Business Administration’s landmark 504 refinancing program. 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. Small businesses account for two out of every three new jobs created, but in my work and conversations with 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.

“I am so glad we could be joined today by the SBA’s Isabella Guzman as well as so many local entrepreneurs interested in refinancing. 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.”

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. In May of 2015, Rep. Chu introduced the Commercial Real Estate and Economic Development (CREED) Act 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.