SBA 504 Refinance Program (DRP)

• Refinance Qualified Debt – the original debt used to finance an Eligible Fixed Asset Purchase:
  • At least six months old;
  • SBA 7a, 504, USD included (some eligibility requirements);
  • Payments current for at least the last 12 months or the life of the loan, whichever is less
• Refinance Qualified Debt plus other Secured Debt collateralized by the original Eligible Fixed Asset purchase
• Refinance Qualified Debt with/without other Secured Debt plus fund Business Operating Expenses:
  • This 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 appplication date; up to 90% LTV

• Fair Market Value of Eligible Fixed Assets

90% LTV

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

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

• 25 years – 6.43%
• 20 years – 6.45%
• 10 years – 6.34%

• 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
• If neither above is met, SBA 504 loan amount cannot exceed Company full-time employees x $90,000/$140,000

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