The SBA 504 Refinancing Program has returned as a permanent option for 504 borrowers. The SBA will begin accepting applications on June 24th. The program is very similar to the temporary program that ended in 2012.
Key Program Highlights:
The commercial mortgage/deed of trust debt to be refinanced must be at least two years old.
The loan (or loans - can be more than one eligible loan) being refinanced must not have any late payments in
the previous 12 months and evidence of such must be presented.
The subject property must be a minimum 51% owner occupied (at time of new application) and meet all other eligibility requirements of the SBA 504 program.
For refinance-only projects, the maximum LTV is 90%.
Cash-out refinancing is permitted if equity exists in the asset being financed to cover most eligible business operating expenses.
Unfortunately, existing "government backed" loans, such as 504's, 7(a)'s or USDA loans, cannot be refinanced under this new program. Only conventionally financed commercial mortgages/deeds of trust are eligible.