The SBA 504 Refinance Program is a strategic debt restructuring solution that helps your bank and your business clients. (Sample clients: RMC Stadium Cinemas / Pennyville Station / Aquascape, Inc.)

During an economic downturn, the 504 refinance program offers banks a lending option to strengthen existing credits and loan portfolios. A banker can use the 504 refi to help new and existing customers take advantage of lower interest rates and access equity, while at the same time reducing their own credit exposure through the lower LTV. The full range of 504 refi benefits for lenders include:

The 504 refinance program is only available on debt from a commercial loan used to acquire commercial real estate. For a business to be eligible for the 504 refinance program, it must meet the following requirements:

  • Property must be minimum 51% owner-occupied and meet all other SBA 504 eligibility guidelines
  • Business and existing loan must be at least 2 years old (payments must be current for the last 12 months)
  • At least 85% of existing loan must have been for SBA 504-eligible purposes
  • Government guaranteed loans are not eligible to be refinanced
  • Other assets can be used as collateral to get to 90% LTV
  • Up to 20% of the appraised value can be used for cash out for other business expenses

Download the program flyer and connect with a member of SomerCor’s loan origination team today to learn more!


Brian Comiskey                Elisabeth Williams           Eric Bacon                           Joseph Bailey
Chief Lending Officer      VP, Loan Officer               VP, Loan Officer                  AVP, Loan Officer
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