504 Refinance

The SBA has revised the requirements for eligibility for the 504 Debt Refinancing Program.  Under the revised rules, borrowers are able to pull cash out for eligible business operating expenses.  The loan to value limit for cash out is 85%, with a maximum of 25% of the project costs being used for eligible business operating expenses.

  • Loan(s) to be refinanced must be at least two years old. (More than one loan can be refinanced as long as they are secured by the same asset)
  • Loan(s) must be current on all payments for at least the previous 12 months
  • Maximum loan to value is 90% (85% for cash out as mentioned above)
  • Appraisal dated within 1 year of application date

Maximum loan to value is 90%.  Borrowers are able to pull cash out for eligible business operating expenses.  The loan to value limit for cash out is 85%, with a maximum of 25% of the project costs being used for eligible business operating expenses.

Appraisals dated within one year of the 504 approval are acceptable.

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