SBA 504 Debt Refinance

We have several loan programs to fit almost any business need – but don’t worry about figuring out which program you need, we will do that for you.  Learn more below about what makes Dakota Business Lending a great choice as a small business financing partner for lenders and borrowers.

SBA 504 Refinance - Long-term, fixed rate option for restructuring existing debt & cashing out equity for working capital

*The U.S. Small Business Administration released the new SBA 504 Debt Refinance rules, effective 07/29/21. Download our Debt Refinance Checklist below for more information on the changes to the program.

Why choose an SBA 504: The goal of the SBA 504 program is to create and retain jobs through long-term financing of real estate and equipment at a fixed, below-market interest rate. Businesses often need to restructure existing debt to accommodate growth, changes to the market, take advantage of interest expense savings or to reset a longer term on an existing note with an impending balloon payment.

Loan amounts: $25,000 – $5 million (up to $5.5 million in certain cases)

Equity Requirements: Minimum 10%

Eligible projects: The SBA 504 financing packages may be used to:

  • Refinance existing commercial real estate debt.
  • Refinance existing debt on equipment and other long-term fixed assets.
  • Professional fees directly attributable and essential to the project such as appraisals, environmental investigations and title insurance.
  • Cash out for business operating expenses due in the next 18 months.
    *interest rate for straight refinance is .027% higher than the posted 504 rates
  • Download our SBA 504 Debt Refinance Checklist* for more specific eligibility details of the debt to be refinanced. *includes updated rules from SBA, effective 07/29/21
  • Download our Debt Refinance Structure Worksheet.

Eligible businesses: For-profit corporations, limited liability companies, partnerships or proprietorships with net worth not more than $15 million and average net income not exceeding $5 million in the past two years. The project being financed must demonstrate economic impact on its community, primarily through job creation or retention or some public policy objective. Ineligible businesses include investment companies, gambling facilities and lending institutions.

Collateral and security: Mortgage on the land and building being financed; liens on machinery, equipment and fixtures; lease agreements, and personal guarantees from individuals with 20 percent or more ownership in the company (or limited guarantees from those with less than 20 percent ownership). The participating lender receives the first lien on the collateral; SBA holds the second lien.

Terms: 20- and 25-year terms for real estate and long term fixed assets.

Rate: Fixed rate determined at the time 504 loan is funded, 6-8 weeks after project’s completion

Other Questions?

Contact us to discuss project feasibility and details of this and other loan programs.


Download our SBA 504 Application & Application Checklist below, or better yet! Contact a loan officer in your area to jumpstart the process and have your application prefilled.