SBA 504 Refinance

low, fixed interest rates

The SBA 504 refinance program is designed to refinance existing commercial real estate or equipment with low, fixed interest rates at 10, 20, & 25 year terms. Refinance your adjustable rate loan with a new fixed rate SBA 504 loan.

How to qualify:

Must be a for-profit, small business in the U.S.
Your business must be in operation for two years, and your existing debt must be two years old
Net worth must be less than $15.0 million and net profit after tax (2 year average) of no more than $5.0 million
Existing debt payments cannot be more than 30 days past due during the past 12 months
Your business must occupy at least 51% of its property at the time of application

How funds can be used:

Eligible borrowers are able to refinance up to 90 percent of the current appraised property value
Eligible business expenses may be included such as salaries, rent, utilities, inventory, and business credit cards

Loan structure

A bank or credit union will provide a loan for 50 percent of the total project
Capital Matrix will provide up to 40 percent of the total project with a SBA loan
A contribution of at least 10 percent equity from the small business borrower

What is not eligible:

Existing 504 projects and government-guaranteed loans are not eligible (SBA 7A & USDA)

SBA 504 Fact Sheet

SBA Flyer