SBA 504 Refinance Program

The 504 Refinance Program is designed to help businesses improve cash flow and access the equity of their property to pay down business expenses. With the updated rules provided by the SBA and low, long term FIXED rates, you can’t afford to ignore this program.

To Qualify:

At least 85% of the original loan must have been used to purchase or improve owner occupied commercial real estate or equipment (self storage is eligible).

The note must have been in place for at least six months and the final draw of a new construction project must have occurred at least six months ago.

The note has not been modified – other than renewal on the same terms- in the past 12 months.

On a simple refinance you can refinance up to 90% of the appraised value. If you wish to tap your equity for cash-out refinancing, you can refinance up to 85% of the appraised value with up to 20% of the appraised value available as ‘cash out’ for eligible business expenses.

Key Points

  • Now available to refinance SBA 7(a) and other government guaranteed debt – some restrictions apply
  • Original use of proceeds for Qualified Debt was at least 85% to acquire or improve a 504 eligible asset which will secure the 504 refinance project
  • Loan to be refinanced must have been in place for six months
  • Appraisal required, current within 12 months

Nick Collins
Bank Five Nine

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