SBA 504 Refinance Program (DRP)

• 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

• Fair Market Value Eligible Fixed Assets

90% LTV

• Commercial Bank 50%
• SBA 504 40%
• Borrower Down Payment 10%

85% LTV

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

*Existing equity can result in 100% financing

• 25 years for commercial real estate
• 20 years for commercial real estate
• 10 years for equipment

• 25 years – 6.32%
• 20 years – 6.39%
• 10 years – 6.52%

• 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

• One job per $90,000 – non-manufacturing
• One job per $140,000 – manufacturing

• No job creation/retention
• See SBA 504 Loan Section on Public Policy & Community Development Goals