504 Refinance Program

In June of 2016 the SBA permanently reinstated its 504 Refinance Program. Originally enacted in 2010 to provide debt relief for small businesses during the economic downturn, the new program has a similar mission; to help qualifying small businesses restructure their fixed asset debt in order to provide them with opportunities for expansion and job creation.

Like traditional 504 loans, the 504 Refinance Program offers long term, below market, fixed rate financing at loan values of up to 90%. For companies that may be saddled with adjustable rate or high interest rate loans, this is a great opportunity to pay off debt at significant savings and increase cash flow at the same time. In order to be eligible for the 504 Refinance Program, companies must meet all of the following requirements:

• The debt to be refinanced must be a commercial property loan
• Debt to be refinanced must have been incurred at least two years before application for 504 Debt Refinancing
• Debt must be secured by 504-eligible (owner-user) fixed assets
• The borrower must be current on all loan payments for at least 12 months prior to 504 Debt Refinancing application

Please note that existing 504 projects and government-guaranteed loans are not eligible to be refinanced and that traditional 504 loan regulations apply to the 504 Debt Refinance Program. Contact one of our loan officers today and learn how you can make this refinancing option work for your business.