Do you have borrowers needing rate relief or a longer term on existing real estate debt?
Do you have borrowers thinking about refinancing and wanting to expand?
SBA 504 may be the right fit for you and your borrower!
SBA 504 Debt Refinancing
Without
Expansion
With
Expansion
Applicant must have been in operation for at least 2 years.
X
Loan to be refinanced must be at least 6 months old.
X
At least 85% of the original debt to be refinanced was used to acquire 504-eligible fixed assets AND the loan is secured by the 504-eligible fixed asset.
X
X
Can be used to refinance federally guaranteed loans, including 504 and 7a loans (additional conditions apply).
X
X
May be used to refinance same-institution debt.
X
X
The new debt must result in at least a 10% reduction in debt service for the portion of the loan being refinanced. *Loans with a balloon feature meet this requirement when refinanced with expansion.
X
X*
All other 504 Loan Program Requirements must be met (including meeting job creation/retention or other economic development objectives)
