SBA 504 Debt Refinancing Program
U.S. Small Business Administration
Up to 90% of appraised value
Fixed-rate refinancing for owner-occupied commercial real estate
The SBA 504 Debt Refinancing Program (a permanent component of the 504 Loan Program) allows small businesses to refinance existing commercial real estate and heavy equipment debt into long-term, fixed-rate SBA 504 financing. Businesses can refinance up to 90% of appraised value and may take out up to 20% in cash for eligible operating expenses. Delivered through Certified Development Companies (CDCs).
- Funding type
- Loan
- Level
- Federal
- Amount range
- $5,000,000
- Realistic amount
- Most 504 refinance projects total $500K–$5M in commercial real estate value. The SBA 504 debenture typically ranges $200…
- Deadline
- Rolling — no application deadline. Available year-round through participating Certified Development Companies (CDCs) and bank lenders.
- Status
- active
- States
- Nationwide
- Payment model
- loan
Who qualifies
- Must be a for-profit small business meeting SBA size standards (generally net worth ≤ $20M and average net income ≤ $6.5M after federal taxes for past 2 years)
- Business must be operational for at least 2 years prior to application
- The debt being refinanced must be at least 6 months old
- The commercial real estate or equipment being refinanced must be at least 51% owner-occupied
- The original loan proceeds must have been used substantially (85%+) to acquire the eligible fixed asset (real estate or heavy equipment worth ≥ $100,000)
- Business must demonstrate ability to repay from cash flow
- Must work through an SBA-approved Certified Development Company (CDC) and a participating bank/lender
Hard requirements
- Must be incorporated
What it covers
Eligible expenses
- Refinancing of existing commercial real estate mortgage where 85%+ of original loan proceeds funded the property purchase
- Refinancing of commercial equipment loans where equipment is worth $100,000+ and is essential to the business
- Cash-out up to 20% of appraised value for eligible operating expenses (payroll, rent, inventory, utilities, medical costs)
Ineligible expenses
- Refinancing of personal real estate or mixed-use property below 51% owner-occupied
- Refinancing of existing SBA 504 loans (cannot re-refinance a 504)
- Refinancing of debts less than 6 months old
- Cash-out for debt retirement of other SBA loans
- Speculative real estate or investment properties
How to apply
-
1
Find an SBA-approved Certified Development Company (CDC)
Locate a CDC in your state via sba.gov. The CDC acts as the SBA's representative and manages the 504 application process. Many CDCs also have preferred bank lenders they work with regularly.
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2
Gather property and financial documentation
Provide: commercial appraisal of the property/asset being refinanced, current loan statements for the debt to be refinanced, 3 years of business tax returns, YTD profit and loss, personal financial statements for owners with 20%+ equity, and original loan documents showing proceeds were used for the eligible asset.
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3
Submit application to CDC and participating bank
The CDC prepares the SBA 504 application package. The bank provides the first-lien loan (50% of project cost); the CDC packages the SBA debenture (40% of project cost). The borrower's 10% equity is typically the existing equity in the property.
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4
SBA credit approval and debenture issuance
SBA reviews and approves the 504 debenture. CDC sells the debenture on the secondary market to fund the loan. Closing typically takes 45–90 days from a complete application. Fixed rate is set at closing based on 10-year Treasury plus a spread.
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5
Close and begin repayment
Complete closing with CDC and bank. The SBA 504 debenture provides a 25-year fully amortizing fixed rate for real estate (20 years for equipment). Monthly payments to both the bank and the CDC begin after a brief interest-only period.
The 504 refi requires the original loan docs proving 85%+ of proceeds funded the property — dig these up early. Missing this doc is the most common delay.
Deadline & timing
No intake cycle — applications accepted on a rolling basis through CDCs nationwide. Processing from application to close typically takes 45–90 days.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.