Debt Refi

Advantage of 504 Debt Refi

  • Refinance loans secured by real estate with a short maturity/balloon payment
  • Refinance loans with higher or unpredictable short terms rates with a low 20 year rate
  • Access existing equity via a low 20 year rate and term to use for business purposes
  • Refinance loans with too little equity to qualify for conventional financing
  • Participation amounts between Lender and SBA 504 can be 50/50

Qualified Debt is eligible to be refinanced if:

  • 85% of the original debt used to finance Land, Building, Capital Equipment
  • Existing debt is not “government backed”
  • Existing debt is at least 2 years mature
  • Existing debt has no missed or deferred payments over last 12 months

Other Conditions

  • Up to 90% LTV on all property types based upon Appraisal dated within 6 months of Application
  • Up to 75% LTV on all loans requesting a cash out for eligible business expenses
  • Traditional 504 Loan Occupancy Percentages will apply (51% Owner Occupied)
  • 504 Loan must be funded within 6 Months of Approval
  • Project must meet Job Requirements or other Economic Development Objective

who can benefit