Revised Debt Refinance Options
On July 29, 2021, SBA announced several revisions to the existing debt refinance options available in the 504 Loan Program. Some of the highlights include:

Debt refinance with expansion:

  • Amount of existing indebtedness that may be refinanced as part of a 504 Project increased from not more than 50% to not more than 100% of the project costs of the expansion

  • No other changes to 504 Debt Refinance WITH Expansion

  • Applicant must still be current on all payments due for 12 months preceding SBA application date

Debt refinance without expansion:

  • Was incurred not less than 6 months prior to SBA application date (changed from 2 years)

  • Has been secured by Eligible Fixed Asset(s) for at least 6 months (changed from 2 years)

  • Has been “current on all payments due” (DELETED - HOWEVER, new rules) 

  • "May include” debt subject to a federal guarantee (changed from “is not” and is subject to limitations)

If you are interested in hearing more about these recent changes, give us a call today (337) 234-2977!
Karen Angelle, 
Executive Director
Brennan "Curtis" Landry, 
Loan Officer