Refinancing SBA 7a loan

by a searcher from Rutgers-The State University of New Jersey-Camden - Rutgers School of Business

2 years ago

Does anyone have any experience with refinancing an SBA 7a loan balance with 10-year term?  Are there any conventional products that can do this, perhaps at a fixed rate?  Besides pursuing a fixed rate, I could also see this being useful to reopen more space on the $5 million SBA limit.

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searcher from The University of North Carolina at Chapel Hill - Kenan-Flagler Business School

Good insights Brad, thank you

2 years ago | like reply | 0 likes

lender from Eastern Illinois University

Great question. There are some conventional options available, but qualifying will really depend on how strong the business cash flow and collateral is. Most Banks lending in the $1 to $3 million range want to be fully secured. Plus, they usually do not offer more than 5 to 7 year loan terms for amortizing term debt. There are some creative ways to put structures in place though. If the transaction you financed is pretty much all secured by goodwill, or the cash flow does not support a shorter amortization, it is going to be very hard to get a conventional deal done. However, if you have good business collateral (does not need to fully secure the deal but most of it) and you have cash flow that would support a shorter amortization, there very well could be products for you. I would be more than happy to discuss at any time. We are a commercial loan brokerage firm with over 350 funding partners. You can reach me at --@----.com

2 years ago | like reply | 1 like

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