CSBJ Daily

Despite the troubled economy, a bit of good news for small business owners and homeowners surfaced this week.

For homeowners, the Department of Housing and Urban Development has approved a higher lending limit for federally insured Home Equity Conversion Mortgages – better known as reverse mortgages.

Previously, limits ranged from $200,160 in rural areas, to $362,790 in the highest home value areas. Now the single, national loan limit is $417,000, which will enable borrowers to obtain substantially greater benefits from their homes.

Reverse mortgages enable homeowners age 62 and older to convert part of the equity in their homes into tax-free income – without selling their home, giving up the title, or making a mortgage payment.

And for local small business owners or entrepreneurs, Small Business Administration loans are still available for qualified borrowers. The Pikes Peak Regional Development Corp., an SBA certified development company, is still doing business as usual. And with commercial real estate prices in a downturn, many believe that now may be the best time to buy property – positioning a local business for the expected growth of 2009 and beyond.

When traditional sources of money decline, SBA 504 loans are an alternative source of long-term financing.

Certified development companies and private sector lending partners work with the SBA to provide financing for purchase, construction or renovation of owner-occupied commercial real estate.