SBA recently authorized First District Development Company to allow refinancing of the Third Party Lender Loan on an existing SBA 504 project in an amount that, when combined with the outstanding balance on the subordinate 504 loan, is not more than 90 percent of the total loan to value. Small business 504 Borrowers will benefit by using equity they have built to support operating expenses.
The lender refinancing the Third Party Loan may be the existing Third Party Lender or a different private lender. This one-time refinance will be allowed for a temporary period from December 27, 2020, to December 26, 2021. Click here for more information and conditions that need to be met.