May 2020 Newsletter
SBA 504 Loan Debt Refinancing Without Expansion
During this unprecedented time, business owners may be looking to restructure their debt and even take out cash equity to pay for certain business expenses. The SBA 504 Loan Program has two options to refinance debt without having to expand!
Option 1: Straight Debt Refinance
This option allows refinancing of existing conventional commercial debt up to 90% loan to value. (Commercial debt must have originated at least 2 years prior to application).
Option 2: Cash Out Debt Refinance
This option allows refinancing for existing conventional commercial debt with cash out to pay for business operating expenses. In this case, the maximum loan-to-value of the debt refinance portion is 85% with the cash out for business operating expenses not exceeding 20% of appraised value.
The debt refinanced loans are structured like SBA’s traditional 504 loans and offer low, long term fixed interest rates. Contact Big Sky Finance to determine which option works for your particular project! Next month we will provide information on debt refinancing if the project includes expansion.
Your Big Sky Finance Team
222 North 32nd Street
Suite 200
Billings, MT 59101
825 Great Northern Blvd
Suite 301
Helena, MT 59601