Refinance Commercial Mortgage Debt
Now your clients can consolidate and refinance debt using the SBA 504 program.
Current Refi Rate is 4.66%
For 20-year term. Includes fees to CDC, SBA and central servicing agent; based on pricing published by NADCO 4-6-17
Boost the bank's loan production
Minimize risk - banks can limit their exposure to 50% of total 504 loan
Generate new fee income coupled with a quality portfolio loan
Free up your client's trapped capital
Combined LTV (1st & 2nd) up to 90%
20-year, below-market, fixed interest rate for the 504 loan
Can refinance one or more commercial loans
Maximum refinance LTV - 90% of the value of collateral pledged for existing mortgage or secured debt(s). Cross collateralization of other fixed assets is allowed to get to 90%
Maximum refinance LTV - 85% of the value of collateral pledged when mortgage refinance request also includes "Eligible Business Expenses". The aggregate amount of eligible expenses cannot exceed 25% LTV
The loan to be refinanced must be at least 24 months old and in good standing for the last 12 months
Business must be operating for 2 or more years
Appraisal is not required to submit refinance application, but will be a condition of funding
Business must be at 51% occupancy at the time of application submission
A CDC can only participate in refinance requests up to 50% of the SBA 504 dollars lent in the prior fiscal year.This will not affect partners like CDC Small Business Finance based on our high loan volume
SBA Refi Success Stories
" The SBA 504 refinance program came at the right time. We were facing a significant balloon payment with our old loan. The refi offered a fixed rate over 20 years. It gives us more financial flexibility and allows us to allocate more dollars to initiative that will help the company grow and create new jobs. "
" Small business owners who currently own their own building and are facing an imminent balloon payment on existing financing can really benefit from this program. "
" The SBA 504 program provided a way to refinance my buildings and use the equity to completely pay off my commercial bank debt. "