I plan to finance my acquisition through SBA 7a loan.

Given that there seems to be no prepayment penalty for SBA loans, I plan to make additional payments at the end of each year to lower my debt service. Let's say I make $50K additional payment at the end of each year.

How will this change my monthly payment in the following years? Do the lenders recast the remaining balance with 10 year amortization schedule again, or recast using the remaining years (so 9 year amortization if lump sum payment is made at the end of first year)? Also, if the rate has come down by the end of the first year, I assume they use the new, lower rate to recast the payments?

Lastly, in terms of LTV, at what point will I be able to refinance the remaining balance with conventional loan to remove PG?

Would be good to hear from the lenders here how this works.