On July 29, 2021 the Small Business Administration published Interim Final Rule 021-15975, outlining enhancements to the SBA 504 REFI program. These rules are effective immediately. SomerCor hosted a webinar for lenders regarding these program changes on August 11, 2021. If you would like to download the full presentation, which includes the PowerPoint slides and a link to the webinar recording – please provide your information below and it will be emailed to you directly:

Important highlights include:

504 Debt Refinancing with Expansion

  • The amount of debt eligible for refinance is increased to 100% of expansion costs (increased from 50%)

504 Debt Refinancing without Expansion

  • Qualified Debt must be at least 6 months old before the SBA application date to be eligible for refinance (reduced from 2 years)
  • Allows the refinance of certain existing government guaranteed debt
    • The refinancing of any federally-guaranteed debt must provide a “substantial benefit” to the borrower – minimum 10% savings on the new installment amount attributable to the debt being refinanced
    • Existing SBA 504 Loan – Third Party Loan and the 504 loan must be refinanced, or the Third Party Loan must be paid in full
    • Existing SBA 7(a) Loan – refi eligibility requires a certified development company to verify that the original 7(a) lender is either unwilling or unable (due to secondary market investor input) to modify the original loan terms

Contact our team! 

SomerCor will provide the latest updates on SBA 504 program changes. In the meantime, please connect with a member of our loan origination team to learn more about borrower and lender benefits of the SBA 504 loan and refi programs.

Margaret Griffin
EVP, Chief Lending Officer
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Brian Comiskey
EVP, Chief Credit Officer
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Elisabeth Williams
SVP, Loan Officer
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Eric Bacon
VP, Loan Officer
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