Lenders... The Security of Partnership

Partnering with Enterprise Development offers a number of advantages, including:

  • Manage overall lending limits and industry exposure:  Smaller banks can entertain larger projects and larger banks can limit their exposure to certain industries.
  • Mitigation of credit risks:  Lenders have a first lien position and typically a 50% loan-to-value ratio, minimizing collateral risk.
  • Assist more customers:  Leverage lending capacity across more borrowers and diversified default risks.
  • Gain new customers:  504 refinance loans are designed to to help borrowers reduce payments and improve cash flow by providing them with fixed interest rates over the life of the loan.
  • Strengthening core earnings:  90% financing means that more of the customer's funds remain on deposit.
  • CRA credit:  Banks using the 504 are eligible for Community Reinvestment Act (CRA) credit.



 PictureOne of the biggest advantages of the 504 Refinance Program is the partnership that develops between the lender and Enterprise Development....partnerships that expand over time into relationships that benefit everyone involved.
Additional Qualifications for SBA 504 Refinance Loan Program:
  • Existing Conventional Debt must have been in place for at least 6 years.
  • Multiple notes may be refinanced into the same project.
  • Notes must be in the name of the small business. 
  • No delinquencies for the last 12 months.
  • 85% of original loan proceeds were used for real estate and capital assets.
  • Maximum LTV for a simple refinance is 90%.
  • Maximum LTV for a cash out refinance is 75%.
  • Minimum cash flow improvement of 10%, or refinancing a balloon note.
  • Borrower is able to use their real estate equity as their source of down payment.
  • The down payment requirement for Special Use Properties is lowered to 10%.
  • Project must meet either the job creation or retention ratio, or one of 16 Public Policy goals. For refinance projects, the business can count their current employees towards the required job ratio.  ​  Click here for details.​

504 Refinance Process