The SBA 504 Refinance Program

The SBA 504 refinance program helps business owners access equity trapped in their commercial real estate holdings. Lenders can boost loan production and generate new fee income from a quality portfolio, while minimizing risk, since the SBA's 504 second lien allows banks to limit heir exposure to 50 percent of the total refinance loan.

SBA 504 Refinance Loan Highlights
  • Multiple loans can be consolidated and/or refinanced
  • Up to 90% loan-to-value (first and second combined)
  • Below-market interest rates

​SBA 504 Eligibility Guidelines
  • Subject property must be minimum 51% owner-occupied and meet all other SBA 504 eligibility guidelines at time of application
  • The business must be at least 2 years old
  • The loan(s) to be refinanced must be at least 2 years old and not be more than 30 days past due in past 12 months
  • At least 85% of existing loan must have been for SBA 504-eligible purposes
  • Loan must not be subject to a federal agency guarantee (existing SBA 504 or 7(a) loans are not eligible)
  • Appraisal not due at application, but will be required for funding
  • Other assets can be used as collateral to get to 90% LTV
  • Up to 25% of the appraised value can be used for cash out for other business expenses (salaries, rent, utilities, inventory or other obligations of the business)