The U.S. Small Business Administration ("SBA") has designated June 1, 2016 as the relaunch date for the SBA 504 Debt Refinance Program.
Here are a few things that we know today that can help you plan ahead for the relaunch date:
1) Commercial Real Estate and Equipment can be pledged as collateral for a new SBA 504 Debt Refinance Loans;
2) Conventional Loans, Private Lender Notes and Hard Money Loans can be refinanced;
3) Eligible SBA 504 Debt Refinance Loans are to be structured as follows:
a) Third-Party Lender - Not Less than 50% of the Total Project Cost;
b) SBA 504 Loan - Not more than 40% of the Total Project Cost;
c) Borrower shall contribute not less than 10% of the Total Project Cost (Cash and Collateral Equity)
4) SBA 504 Debt Refinance Loans may not exceed the outstanding principal balance of the debt being refinanced.
Even though official rules have not been released by the SBA it is never too soon to get your package organized and ready for submission. Contact us today for more information.
Here are a few things that we know today that can help you plan ahead for the relaunch date:
1) Commercial Real Estate and Equipment can be pledged as collateral for a new SBA 504 Debt Refinance Loans;
2) Conventional Loans, Private Lender Notes and Hard Money Loans can be refinanced;
3) Eligible SBA 504 Debt Refinance Loans are to be structured as follows:
a) Third-Party Lender - Not Less than 50% of the Total Project Cost;
b) SBA 504 Loan - Not more than 40% of the Total Project Cost;
c) Borrower shall contribute not less than 10% of the Total Project Cost (Cash and Collateral Equity)
4) SBA 504 Debt Refinance Loans may not exceed the outstanding principal balance of the debt being refinanced.
Even though official rules have not been released by the SBA it is never too soon to get your package organized and ready for submission. Contact us today for more information.
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