In 2016 congress passed legislation changing the 504 program to allow for the refinancing of commercial debt! This permanent change to the program enables business owners to obtain long term fixed rates and potentially tap the liquidity within their commercial real estate
25-Year: 3.710% | 25-Year REFI: 3.712% | 20-Year: 3.639% | 20-Year REFI: 3.641% | 10-Year: 3.791% | 10-Year REFI: 3.793% (As of January 2020)
SBA 504 Refinance Program
Refinance Your Debt
SBA 504 Refinance Program can
- Increase Cash Flow
- Reduced Monthly Payments
- Stabilize Budgeting
- Refinance Commercial Real Estate Debt
- Refinance Other Business Debt
Benefits
- Allow 85% financing
- Stabilize rate exposure in a rising rate environment
- Provide cash out for business expenses
- Eliminate the need to refinance the loan every 5 years
- Increase cash flow
- 20/10 year below market fixed rates
- Consolidate commercial real estate debt with other business debt
- Reduced monthly payments
Eligibility
- The loan is at least 2 years old
- The property being refinanced is at least 51% owner-occupied
- The debt was originally used for the purchase/improvement of fixed assets
- The business has been current on the debt for the past 12 months
