Lenders... The Security of Partnership
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.