SBA 504 Refinancing Program - "Other Secured Debt"

by a searcher from Lousiana State University

3 years ago

The SBA 504 Refinancing Program allows borrowers to use the refi proceeds to repay "Other Secured Debt", if the debt is secured by the assets being refinanced.  Does anyone have experience structuring outside money (i.e., non-bank, non-mezz money) in a way that meets the SBA's eligibility requirements of "Other Secured Debt"?

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lender from Eastern Illinois University

You can use the SBA 504 loan to refinance "Other Secured Debt" so long as that debt is secured by either the property or the business that operates from that property. Any debt that is owed by that business and is secured by the business should be eligible so long as you do not exceed the LTV guidelines of the SBA 504 refinance program. However, you will have to provide evidence the other debt was used in the business. That is typically easy to provide for equipment financing or Bank debt, but can be harder to prove for credit cards or other debt. I hope this helps. If you would like to discuss further you can reach me at --@----.com or message me here on Searchfunder. Thank you.

3 years ago | like reply | 1 like

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