SBA 504 Refinance Loan
Thanks to recent changes to the SBA 504 Program, business owners can now access equity in commercial real estate by refinancing conventional real estate loans with an SBA 504 loan.
Highlights:
- Reduce monthly loan payments
- Increase cash flow
- Consolidate multiple loans
- Financing for up to 90% of the appraised property value (85% for cash-out projects)
- Up to 20% of the appraised value can be used for cash out for other eligible business expenses (including salaries, rent, and inventory)
- Below-market, fully-amortized, long-term (10-, 20-, and 25-year) fixed rates
Eligibility:
- The loan being refinanced is at least 2 years old
- The property being refinanced is at least 51% occupied by the business
- The debt was originally used for the purchase or renovation of fixed assets
- The business has been current on the loan to be refinanced for the past 12 months
- Existing SBA 504 and 7(a) loans are now eligible, but subject to certain requirements
Want to learn more?
If you have an existing commercial loan on your building and want to decrease monthly payments, increase cash flow, get cash-out, or consolidate more expensive debt, the 504 Refi Loan could be the answer.