10 Years: 5.112%
20 Years: 4.920%
HCDC is now accepting applications for the refinance of commercial debt using the recently reinstated SBA Debt Refinance Program. The program can be used on eligible fixed assets that include what would have been originally financed with an SBA 504 loan, such as land, buildings, machinery, and equipment, whether acquired, constructed, or improved for the benefit of the small business.
This is the time to refinance existing commercial debt. With the SBA 504 Program now at historic low interest rates, borrowers can lock in a low rate for twenty years. Even 504 borrowers who refinanced their 504 loan more than two years ago, can come back and use the 504 Debt Refinance Program.
Other requirements for consideration include:
The borrower and the refinanced debt must have been in place at least two years before the date of the application for refinance
The borrower must have been current on all payments due for not less than one year preceding the date of application for refinance
The refinancing project provided by the 504 loan and the Third-Party Lender loan cannot be more than 90% of the fair market value of the fixed assets that will serve as collateral. If the refinance debt is less than 90%, and if the borrower requests, refinance proceeds can also be used to “cash out” to cover other eligible business expenses, such as salaries, rents, utilities, inventory, or other business obligations of the business, that were incurred but not paid, or will become due for payment within eighteen months of the application.