SBA 504 Refinance Is Coming Back in 2016!

by John King on December 18, 2015

Update: June 2016:

The refi program is officially back.  Guidelines have been released with more to come shortly.  Here is what is known so far:

· Special Use or Single purpose buildings like hotels and assisted living facilities ARE eligible up to 90% LTV even though they would typically require more equity to get SBA financing as long as all the debt to be refinanced consists of secured long-term fixed assets.
· The business must be at least 2 years old.
· The debt to be refinanced must be at least 2 years old
· The loan to be refinanced must be current during the last 12 months
· Real estate, long life heavy equipment and machinery can be financed at 90% LTV
· Cash out for operating expenses including debt consolidation is limited to 75% loan to value.  (This hurts as the industry was hoping for 90% loan to value like the original version of the program offered, but this is understandable).
· Existing “government backed” loans are not eligible to be refinanced (i.e. the program cannot be used to refi an existing 504 loan, an SBA 7a loan or a USDA loan).
SBA will start accepting loan files from lenders on June 24.

Breaking News 12/18/2015 : Congress has just approved the return of the 504 Refinance Program

The 504 refi program had a very short, but successful life a few years ago and quite frankly not that many people in the SBA lending industry thought it would ever come back, but today it was written into law and it will be permanent.

This could be a HUGE deal for business owners needing to refinance their real estate, buildings and equipment.

It will likely be 4 to 6 months before the program is rolled out and we won’t know exactly what the rules will be, but hopefully they will be similar to what they were the last go round.

This post as well as our web page located here will be updated as information becomes available.


SBA Down Payment - Can It Be Borrowed?

by John King on September 27, 2015

SBA Loan Down Payment - When Can It Be Borrowed?

You can borrow the down payment for an SBA loan if you have another source of income outside of the business that you are borrowing the money for AND if the payment on the borrowed money is something you can comfortably afford.

The Small Business Administration states the following in their “underwriting manual”:

If the Small Business Applicant can demonstrate repayment of this personal loan from sources other than the cash flow of the business, the cash injection may be considered equity. (Note: The salary of the business owner does not qualify.)

There are many good examples of how this could work.  Probably the most common scenario is one in which a prospective borrower has home equity available that they can borrow against and a regular job with regular income to make the payments (or a spouse with a job and consistent income) AND the business being acquired or started is the type where the business owner does not need to be on site full time.  (Home equity payments are usually very affordable).

A good example of this would be a self storage business, especially one where the customers can let themselves in.  Other good examples would be businesses where the business owner has capable management - like a hotel.

100% Financing - An Alternative for Existing Businesses

Keep in mind that there is a 100% financing option with the SBA 7a loan for existing businesses buying real estate.  It is not without it’s shortcomings, but it can be a very good solution for some businesses.  Click here for more info.

If you have a question about your situation feel free to e-mail me at jking(at)greencommercialcapital(dot)com.


Financing for Residential Care Homes

May 17, 2015

Residential Care Home Financing Possible With 10% (Cash) Down*
Residential Care Homes - aka “Board and Care homes” are becoming more popular across the U.S.  In Florida they are known as Adult Family Care Homes (AFCH’s) and in California they are commonly referred to as Residential Care Facilities for the Elderly (RCFE’s).  They are also popular [...]

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Wilmington, NC Commercial Loans

February 17, 2015

Commercial Lender For Wilmington, NC Area - 10% to 20% Down
One of our excellent commercial lenders that specializes in the SBA 504 program has A LOT of money to lend specifically in New Hanover County, NC for loans of $1 million or more for either purchase or construction of a building or the refinance of [...]

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SBA Golf Course Loans & Financing

June 25, 2014

Golf Course Lending is Back…
Golf course loans are possible again IF you have had a solid last few years.
We recently assisted a client with a $3.4 million refinance of their golf course and the key to getting the loan approved was consistent cash flow for the last few years and solid guarantors.
So, yes…it is possible [...]

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100% Fixed Rate Medical Building Financing

June 24, 2014

100% Building Purchase or Construction Financing
Long term fixed rate financing is available for owner occupied medical, dental and veterinary buildings for 100% of the building costs - including construction - for existing, profitable practices.
This program is a 2 loan structure where the first mortgage is a 25 year fixed rate for 90% of the purchase [...]

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Self Storage Financing - 95% Financing Possible

May 28, 2014

95% Financing Possible for Self Storage Facilities
It is now possible to get 95% financing for a mini-storage facility IF:

You currently own another profitable facility
You have very good credit
You are purchasing a facility with solid existing cash flow (see note below re: self storage construction financing)
You are purchasing a facility in very good condition
You have solid [...]

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100% Financing: Commercial Buildings - SBA

April 5, 2014

100% (technically up to 125%) Financing Available
Yes, you read that headline correctly.
You can purchase, refinance and possibly construct a “general purpose” building that would house your business with nothing down and possibly finance all closing costs and even some other business debt and working capital using an SBA loan, but like all commercial lending programs [...]

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Hard Money Loans

December 1, 2013

Hard Money Loans
Hard money lending became a big deal as a result of the Great Recession and it continues to play a major role in commercial and investment property financing.
The recession caused a multitude of issues in the world of commercial real estate including a significant tightening of traditional credit which led to numerous foreclosures [...]

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Stated Income Loans

December 1, 2013

Stated Income Loans - A little history
There was a time when stated income loans actually served a purpose other than lining the pockets of the Wall St elite while our economy went down in flames.  In fact, stated income loans have actually existed for a very long time.
You may not know this but before the [...]

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