Loan Rates (as of June 2020)
Historically Low: SBA 504 Loan
20 Years: 2.528%
25 Years: 2.602%
Ohio 166 Loan –
Prime or Below
HCDC is now accepting applications for the refinance of conventional commercial real estate debt using the 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. The 504 Debt Refinance Program can not be used to refinance existing SBA Loans.
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 up to twenty-five 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 existing debt is collateralized by the assets being refinanced
- The debt does not have a Federal Guarantee and is not the Third-Party Lender part of an existing 504 project
- The refinance project must meet the job creation or other economic development requirements of the regular 504 Program
- The refinance project does not involve an expansion or renovation of the project property
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.