SBA 504 Refinance

SBA 504 refinance: help your clients consolidate or refinance conventional real estate loans

*The 2021 Consolidated Appropriations Act, (signed December 27th) has enhanced the SBA 504 Refinance Program visit our COVID-19 Resource Page for details or download summary of key provisions for small businesses.

The reauthorization of the SBA 504 refinance program allows lenders to help business owners to access equity trapped in their commercial real estate holdings. Lenders can boost loan production and generate new fee income from a quality portfolio, while minimizing risk, as TMC’s 504 second lien allows banks to limit their exposure to 50 percent of the total refinance loan.

SBA 504 Refinance Loan Highlights

  • Multiple loans can be consolidated and/or refinanced
  • Up to 90% loan-to-value (first and second combined)
  • Cash out available up to 85% LTV
  • Below-market interest rate, currently, FIXED for 25 years,  FIXED for 20 years or  FIXED for 10 years on 504 loan
  • Bank will be at a low 1st position LTV

SBA 504 Eligibility Guidelines

  • Subject property must be minimum 51% owner-occupied and meet all other SBA 504 eligibility guidelines at time of application
  • Business and existing loan must be at least 2 years old (loan must not be more than 30 days past due in past 12 months)
  • At least 85% of existing loan must have been for SBA 504-eligible purposes
  • Loan must not be subject to a federal agency guarantee (existing SBA 504 or 7(a) loans are not eligible)
  • Appraisal not due at application, but will be required for funding
  • 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 (salaries, rent, utilities, inventory or other obligations of the business)
  • CDCs are limited to participating in loans up to 50 percent of their previous year’s SBA 504 volume; due to our high loan volume, TMC will not be limited by this rule

TMC Financing has specialized in owner-user commercial real estate financing for 40  years.




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