Debt Refinance 504 Loan Program

How to Qualify
  • Business has been in operation for a minimum of two years
  • Business occupies 51% or more of the real estate square footage (investment property is not eligible)
  • Real estate is commercial property (residential property is not eligible)
  • Loan was entered into a minimum of two years ago
  • Loan has been current for past 12 months
  • Loan was originally used to purchase or improve commercial real estate
  • Loan is currently financed using conventional bank financing (government backed loans not eligible, including SBA 7a, SBA 504 1st and 2nd mortgages, USDA loans)

Debt Refinance Only
You can refinance existing debt up to 90% of the current appraised value

New appraisal required at application.

Example:
Appraised value:$2,000,000
Existing loan:$1,000,000
Loan-to-value50%


Example:
Appraised value:$2,000,000
Existing loan:$1,800,000
Loan-to-value90%


Cash Out Refinance
Total Loan-to-Value cannot exceed 75%

Cash out cannot exceed 25% of the appraised value

  • Inventory
  • Accounts payable
  • Payoff / pay down of line of credit
  • Payoff of existing business term debt
  • Payoff of business credit card debt
  • Working capital expenses
  • Purchase of equipment

Debt Refinance Structure Examples

Appraised value$1,000,000
75% LTV$750,000
Current debt to be refinanced$500,000
Available equity for cash out$250,000


Appraised value$1,000,000
75% LTV$750,000
Current debt to be refinanced$250,000
Available equity for cash out$250,000


Appraised value$1,000,000
75% LTV$750,000
Current debt to be refinanced$750,000
Available equity for cash out$0

Download the brochure

Calculate your available equity

$
$900,000
$
$750,000
$250,000


Fees for Debt Refinance 504 loans are the same as Traditional 504 loans

What We Do

The Regional Development Company (RDC) is a Certified Development Company, licensed by the U.S. Small Business Administration.  We serve northern Indiana businesses seeking funding to help grow their company.

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Latest News

November 2012 - Regional Development Company Presents Awards, Welcomes New Board Members.

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Contact Us

Have questions about your options for expansion?  We are here to help.

Contact Us

1757 Thornapple Circle
Valparaiso, Indiana 46385 (map)

phone: 219.476.0504
fax: 219.476.4141