Best SBA Loans For Largo Businesses

Examples of unreasonable terms may include:

• a demand or balloon maturity feature in the existing note or the current maturity is not appropriate for original purpose

• the existing debt being refinanced is on a revolving line or a credit card

• interest rate exceeds SBA’s maximum

• loan is over-collateralized

• line of credit lender is unwilling to renew

• debt was used for change of ownership  (seller financing must have performed for 24 months.)

Refinancing of same financial institution debt is possible but must document a 36 month payment history with no unjustified past dues (> 30 days). Refinancing of an existing SBA loan is generally not allowed but may be considered if the borrower has new financing needs that the existing lender has declined or the existing lender has refused to modify the terms of the existing SBA loan to accommodate the new loan.

Borrowers are able to refinance up to 90 percent of the current appraised property value. The refinancing may also include Eligible Business Expenses, with a maximum Loan to Value of 75 percent.

Eligibility

To be eligible for the 504 Refinancing Program, a business must have been in operation for at least two years.

The debt to be refinanced must be a commercial loan:

That was incurred for the benefit of the small business concern not less than 2 years before the date of the 504 Debt Refinancing application.

The proceeds of which were used to acquire a 504 eligible fixed asset (i.e., owner-occupied real estate, land, equipment, etc.).

That is secured by 504 eligible fixed assets.

For which the borrower has been current on all payments for at least the last 12 months prior to application.

Existing 504 projects and government-guaranteed loans are not eligible to be refinanced.

Traditional 504 Loan Program regulations apply to the 504 Debt Refinance Program.