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How to Refinance an SBA 7a into an SBA 504
Up until recently, you couldn't refinance an SBA 7a into an SBA 504. But that's all changed!
Now, you can. And it's worth exploring, as you can save oodles in interest.
The rules for the SBA 504 loan just got changed and it will allow you to refinance your SBA 7a loan into an SBA 504 loan. This was not allowed up until now unless you were doing a lot of additional business expansion.
THIS IS HUGE NEWS!
Most SBA 7a rates on properties are adjustable in the 6% range (currently).
However, current blended SBA 504 rates are in the fixed four percent range.
If you could save two percent, would you do it? Of course you would!
NOTE that SBA 504 loans are for real estate and equipment only. Business-only loans aren't eligible for this program.
If a borrower owns the real estate that their business is on, and they are in the SBA 7a program, they will save thousands of dollars over the life of the loan!
For example, on a one million dollar loan, the savings would be around $1,500 a month.
Think of it this way: To pay that extra $1,500 (every month), you would have to earn $15,000 MORE in sales if you run a ten percent profit margin.
Put another way, you can sell LESS and make MORE if you convert your SBA 7a into an SBA 504 loan, due to the net decrease in interest payments you'll be making.
Sound good, find out more here – book a call with Beau – https://calendly.com/beaueckstein/15-…