SBA Rates 6.206% 10yr 5.904% 10 yr (Manufacturing) 6.209% 20yr 5.957% 20yr (Manufacturing) 6.176% 25yr 5.933% 25yr (Manufacturing) | SBA Refi Rates 6.209% 10yr N/A 20yr 6.179% 25yr | Prime Rate 6.75%
SBA REFINANCE PROGRAM
This program is for refinancing only. Business expansion, purchase, or construction projects must adhere to guidelines for NEW SBA 504 loans.
Refinancing Program Details
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Eligible expenses include current secured debt not already part of a 504 project and business operating expenses that will become due within 18 months of application.
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Secured debt-only refinance projects are limited to 90% LTV of an appraisal on project collateral. Additional collateral can be pledged.
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For refinance projects that will include business operating expenses, a 75% LTV limit applies, and these itemized operating expenses cannot exceed 25% of the appraised value of project collateral (such as salaries, rent, utilities, and inventory).
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Eligible long-term fixed assets include land, buildings, machinery, and equipment.
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All loan projects submitted for refinancing will be subject to tight underwriting to ensure no detrimental impact will occur because of the refinance.
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An SBA guarantee fee to sustain the program will be determined annually and made part of the interest rate.
Refinance “Qualified Debt” Requirements
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Eligible expenses include current secured debt not already part of a 504 project and business operating expenses that will become due within 18 months of application.
-
Secured debt-only refinance projects are limited to 90% LTV of an appraisal on project collateral. Additional collateral can be pledged.
-
For refinance projects that will include business operating expenses, a 75% LTV limit applies, and these itemized operating expenses cannot exceed 25% of the appraised value of project collateral (such as salaries, rent, utilities, and inventory).
-
Eligible long-term fixed assets include land, buildings, machinery, and equipment.
-
All loan projects submitted for refinancing will be subject to tight underwriting to ensure no detrimental impact will occur because of the refinance.
-
An SBA guarantee fee to sustain the program will be determined annually and made part of the interest rate.
Sample SBA 504 Refinancing Project
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Eligible expenses include current secured debt not already part of a 504 project and business operating expenses that will become due within 18 months of application.
-
Secured debt-only refinance projects are limited to 90% LTV of an appraisal on project collateral. Additional collateral can be pledged.
-
For refinance projects that will include business operating expenses, a 75% LTV limit applies, and these itemized operating expenses cannot exceed 25% of the appraised value of project collateral (such as salaries, rent, utilities, and inventory).
-
Eligible long-term fixed assets include land, buildings, machinery, and equipment.
-
All loan projects submitted for refinancing will be subject to tight underwriting to ensure no detrimental impact will occur because of the refinance.
-
An SBA guarantee fee to sustain the program will be determined annually and made part of the interest rate.