504 Refi Requirements:
Been in business for 2 years or more
Conventional debtCannot be government financing of any kind (meaning: 7(a), other 504 loans, express loans etc.), debt must be at least 6 months old. Note that existing debt is not eligible until 6 months have elapsed from the date of the last disbursement. This would apply to loans with a disbursement period for construction etc.
Provide payment history for loan to be paid off. Any delinquency in payments should be thoroughly explained in a letter of explanation to be reviewed during the credit underwrite.
EquityMonetary value of a property or business beyond any amounts owed on it in mortgage, claims, liens, etc. in the real estate used for down payment
If appraisal supports it, cash out up to 20% of appraised value is available for eligible business expenses
Existing debt subject to a federal guarantee is eligible under certain conditions – call PLP to discuss the conditions further
