SBA published Notice 5000-1939 that provides further guidance on program requirements specific to the 504 Debt Refinancing Program. The changes listed in this notice are effective as of November 17, 2016.
SBA Policy Notice 5000-1939 changes and clarifies 504 Debt Refinancing Program requirements originally provided on May 26, 2016 in SBA Policy Notice 5000-1382: Reauthorization of 504 Debt Refinancing Program.
Highlighted changes:
- Loan-to-Value Limitation for the Financing of “Business Operating Expenses” increased from 75% LTV to 85% LTV.
- Appraisals allowed to be dated within one year of 504 loan approval instead of 6 months.
- Option to use Interim Loan or Escrow Account for same institution debt.
For additional information on these enhancements, or to see if a project qualifies for a debt refinance loan, please contact a loan officer.