504 Refinance DRP Application & Forms
Uses
  • Refinance Qualified Debt – the original debt used to finance an Eligible Fixed Asset purchase:
    • At least two years old
    • Not subject to federal government guarantee SBA 7a, 504, USD
    • Been current for at least the last full year
  • Refinance Qualified Debt + other Secured Debt collateralized by the original Eligible Fixed Asset purchase
  • Refinance Qualified Debt with/without other Secured Debt + fund Business Operating Expenses
    • These can include salaries, rent, utilities, inventory, etc. that have not been paid prior to DRP application date or will be due for payment within 18 months of DRP application date
    • Cannot exceed 25% Fair Market Value of Eligible Fixed Assets
Project Basis
  • Fair Market Value Eligible Fixed Assets
Typical Financing Structure

90% LTV

  • Commercial Bank 50%
  • SBA 504 40%
  • Borrower Down Payment 10%
Financing Structure with Business Operating Expenses

85% LTV

  • Commercial Bank 45%
  • SBA 504 40%
  • Borrower 15%*

*Existing equity can result in 100% financing

Loan Term
  • 25 years for commercial real estate
  • 20 years for commercial real estate
  • 10 years for equipment
Current Interest Rate
  • 25 years – 6.36%
  • 20 years – 6.49%
  • 10 years – 6.52%
Eligibility Requirements
  • Small Business Concern in operation at least two years
  • Ownership changes in last two years haven’t resulted in unproven management
  • Must fund within six months of 504 DRP approval
  • Appraisal dates within one year of DRP application approval date
  • Same financial institution debt allowed
Job Creation/Retention Requirements
  • One job per $90,000 – non-manufacturing
  • One job per $140,000 – manufacturing
Exception*: Public Policy or Community Development Goals
  • No job creation/retention
  • See SBA 504 Loan Section on Public Policy & Community Development Goals

Have Questions?

504 Refinance DRP Application & Forms

Click to Download Form