Refinance commercial mortgage debt with an SBA 504 refinance loan
Business owners can now access equity trapped in commercial real estate holdings by refinancing conventional real estate loans with TMC’s SBA 504 refinance loan. The SBA 504 program offers business owners the opportunity to secure below-market, fixed interest rates, amortized over 20 years, for up to 90 percent of the appraised value of commercial real estate property. Owners can take cash out for qualified business expenses, which include salaries, rent, utilities, inventory or other obligations of the business.
Advantages of TMC’s SBA 504 Refinance Loan
- Financing up to 90% of the appraised property value
- Cash out for eligible business expenses up to 85% of the appraised property value (business expenses are limited to 25% of appraised value)
- Below-market interest rate, currently 4.41% FIXED for 20 years or 4.18% FIXED for 10 years on 504 loan
- The ability to consolidate multiple loans
SBA 504 Refinance Eligibility Guidelines
- Almost any owner-occupied property will qualify: 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 conventional 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)
- Other assets can be used as collateral to get to 90% LTV
- Up to 25% of the appraised value can be used for cash out for other business expenses (salaries, rent, utilities, inventory or other obligations of the business)
- Appraisal not due at application, but will be required for funding
TMC Financing has specialized in owner-user commercial real estate financing for more than 30 years.