The New SBA 504 Loan Refinance Rules
On October 12, 2023, the Federal Register revealed that SBA is making changes that were created in the interim final rule published on July 29, 2021, permanent. This modifies requirements for refinancing debt in the 504 loan program. It is important to review both the new, permanent changes and the existing rules for the program.
These are the highlights published in the October 12, 2023 Federal Register:
A loan that is subject to a guarantee by a Federal agency or department may be refinanced under the following conditions and requirements:
- An existing 504 loan may be refinanced if both the Third Party Loan and the 504 Loan are being refinanced or the Third Party Loan has been paid in full. If the 504 Loan being refinanced received approval through another CDC, the CDC working on the current refinancing must provide advance notice to the other CDC in writing (by email or letter)…
From the Coleman SBA 7(a) Loan Underwriting & Closing newsletter – published weekly.