What are the requirements for refinancing existing debt?
The SBA 504 Program allows for limited refinancing of existing debt as part of a new eligible SBA 504 project. The refinanced debt must have been for long-term fixed assets that would normally have qualified for the SBA 504 program had the program been used originally to finance the assets. The refinancing must be part of a new SBA 504 project (purchase of long-term equipment, purchase of an existing building, expansion or renovation of an existing building, and/or construction of a new building). The amount of debt refinanced is limited to 50% of the new SBA 504 project.
