Author: Capital Access Group

SBA Announces 504 Refinancing Program Improvements, Effective 11/15/24

Posted on by Capital Access Group

The Small Business Administration (SBA) recently announced changes to make the SBA 504 Refinance Loan Program even more accessible. These changes to eligibility criteria aim to make the SBA 504 refinance loan available to more small businesses by making the following revisions to current policy:

  • Raising the loan-to-value maximum on refinance loans without expansion that includes cash out for other business operating expenses from 85% to 90% and eliminating the 20% cap on Eligible Business Expenses (EBE)
  • Aligning both 504 refinance loan programs (with/without expansion) so that both require only 75% of the original loan to have been used for eligible fixed assets (prior to these new changes, this “substantially all” standard only applied to the debt refi without expansion).
  • Revising the “substantial benefit test” when refinancing other government debt by removing the 10% lower payment requirement and allowing more flexibility for the small business borrower
  • Allowing certain “other secured debt” to be included as an Eligible Business Expense in a refinance without expansion

NEWS UPDATE: The 504 Express program is now available!

Posted on by Capital Access Group

This means that we are now able to approve smaller loans in-house, expediting the SBA
approval timeline significantly. While total project costs may amount to well over $1mm,
the 504 portion which is up to 40% of the total project can be up to $500,000.

The increase in the popularity of the SBA 504 loan program has led to longer approval
timelines from the SBA Loan Processing Center, so the 504 Express program will streamline
the process for many borrowers, allowing them to get access to capital faster and lock in
lower rates.

If you’d like to take advantage of long-term fixed interest rates before they continue to
increase, contact us to get started!

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