Highlights of Permanent SBA 504 Refinance Program program:

1. The new rules will be published this Wednesday at the Federal Registry and the SBA will begin processing applications this June 24th.
2. The commercial mortgage/deed of trust debt to be refinanced must be at least 2 years old.
3. 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.
4. The subject property must be a minimum 51% owner occupied and meet all other eligibility requirements of the SBA 504 program.
5. For refinance-only projects, the maximum LTV is 90%.
6. Cash-out refinancing is permitted to cover eligible business operating expenses, although there are more restrictions (contact us and we can discuss the specifics).
7. Unfortunately, existing “government backed” loans, such as 504’s, 7(a)’s or USDA loans, CANNOT be refinanced under this new program. So this is ONLY applicable to conventionally financed commercial mortgages/deeds of trust.

Let us put our experience and expertise to work for you. Call us (310) 356-6500