Refinancing SBA 7a loan

searcher profile

July 10, 2022

by a searcher from Rutgers-The State University of New Jersey-Camden - Rutgers School of Business in Philadelphia, PA, USA

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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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
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 redacted
commentor profile
Reply by a searcher
from The University of North Carolina at Chapel Hill in Boston, MA, USA
Good insights Brad, thank you
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