Debt Refinancing under the 504 loan program is back!
Here are a few things you NEED TO KNOW about the debt refinance program.
- Commercial real estate loans must be in place for a minimum of two years and the borrower must be current on all loan payments for 12 months.
- The appraisal must be dated within the last 12 months of the application date.
- Financing up to 90% of the value is allowed and the authorization lasts six months.
- If the debt to be refinanced is current a government guaranteed loan (current 504 loan, SBA 7a or USDA loan), the loan cannot be refinanced under the 504 loan program.
- Cash out can only be used for business operations expenses incurred within 18 months and cannot be more than 25% of the total loan project with a loan to value of 85%.
- *Renovations cannot be included in the loan request, however repairs are eligible.
Need Help or Have Questions? Toll Free: (800) 850-2504