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The information provided by these calculators is for illustrative purposes only and accuracy is not guaranteed. The default figures shown are hypothetical and may not be applicable to your individual situation. Be sure to consult a BLP financial professional prior to relying on the results.

This calculator does not have the ability to pre-qualify you for any loan program. Qualification for loan programs may require additional information such as credit scores and cash reserves which is not gathered in this calculator. Information such as interest rates and pricing are subject to change at any time and without notice. This calculator does not calculate the Annual Percentage Rate or Average Prime Offer Rates. BLP does not guarantee any of the information obtained by this calculator.

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Debt Refinancing with SBA 504 - BLP - Business Lending Partners
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SBA 504 Debt Refinance Just Got Easier

The SBA recently issued updates to the 504 debt refinance programs, which loosen a few key previous restrictions.

Most Impactful Change: For a note to qualify for the 504 refinance program under the new rules, 75% of the original funds must have been used to:

  1. purchase and/or construct real estate; or
  2. purchase fixed equipment

This is a decrease from the previously required 85%, greatly expanding the number of loans eligible for the SBA 504 debt refinancing.

This change is particularly advantageous for those looking to refinance an existing 7(a) loan, which may have been previously ineligible due to the original loan including a bit too much working capital or other soft costs that prevented meeting the 85% rule. 

 

This change will take effect on November 13th, 2023. Lenders can use the 504 refinance program as a tool to ease cash flow constraints resulting from rising rates for both current borrowers as well as prospective borrowers.

The SBA 504 program enables you to serve your current clients while also obtaining new prospects. Through this program, you can enhance your commercial financial portfolio, positioning your institution as an innovative and strategic partner for your clients.

Did you Know?

CONTACT US FOR YOUR BUSINESS LENDING NEEDS

Wesley Walsh
Wesley Walsh
Loan Officer
Wesley Walsh's aptitude for navigating the world of commercial lending is outstanding and his passion for helping small businesses is second to none. Walsh graduated with Magna Cum Laude honors from UW-Eau Claire and previously worked at Associated Bank in Green Bay and as a business development officer at Tri City National Bank in Milwaukee.
Racine Office262.898.7436wesley@blp504.org

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