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504 Debt Refinancing Program

The Small Business Jobs Act of 2010 temporarily expanded the ability of a small business to use the 504 Certified Development Company (CDC) Loan Program (504 Loan Program) to refinance certain qualifying existing debt. This temporary debt refinance program expired on September 27, 2012.

On December 18, 2015, Section 521 of Division E of the Consolidated Appropriations Act, 2016 (the Act) made a permanent change to the 504 Loan Program, authorizing the Program to be used for debt refinance in any year that the 504 Loan Program is at zero subsidy. SBA has received statutory authority to authorize the 504 Debt Refinance Program for up to $7.5 billion in addition to the $7.5 billion authorization for the regular 504 Program for a total 504 lending authorization of $15 billion.

SBA will begin accepting 504 Debt Refinancing Loan applications on June 24, 2016.

Loan Structure and Use of Proceeds

The refinancing loan is structured like SBA’s traditional 504 loan. Typically, a 504 project includes three elements:

  1. A loan (or first mortgage) secured with a first lien from a private-sector lender covering 50 percent of the project cost,
  2. A second mortgage secured with a second lien from an SBA Certified Development Company (backed by a 100 percent SBA-guaranteed debenture) covering up to 40 percent of the cost,
  3. And a contribution of at least 10 percent equity from the small business borrower.

Borrowers are able to refinance up to 90 percent of the current appraised property value. The refinancing may also include Eligible Business Expenses, with a maximum Loan to Value of 85 percent.



To be eligible for the 504 Refinancing Program, a business must have been in operation for at least two years.

The debt to be refinanced must be a commercial loan:

  • That was incurred for the benefit of the small business concern not less than 2 years before the date of the 504 Debt Refinancing application.
  • The proceeds of which were used to acquire a 504 eligible fixed asset (i.e., owner-occupied real estate, land, equipment, etc.).
  • That is secured by 504 eligible fixed assets.
  • For which the borrower has been current on all payments for at least the last 12 months prior to application.

Existing 504 projects and government-guaranteed loans are not eligible to be refinanced.

Traditional 504 Loan Program regulations apply to the 504 Debt Refinance Program.


To learn more about the Policy and eligibility requirements, view SBA's presentation on 504 Debt Refinancing.  (PDF presentation | Text-only version)

504 Refinancing Program 2017 Briefing Card/Talking Points

Frequently Asked Questions – 504 Debt Refinancing 
This document contains a compilation of questions that were frequently received at SBA and the answers provided to clarify various policy issues related to the 504 Debt Refinancing Program. The incorporated questions span from the date of the publication of the Interim Final Rule on May 25, 2016 through November 17, 2016.

The Consolidated Appropriations Act, Public Law 114-113, passed on December 18, 2015. Section 521 of Division E contains the statutory provisions which permit the 504 Debt Refinancing Program

The Interim Final Rule, published on May 25, 2016 outlines the 504 Debt Refinancing regulations. The Interim Final Rule is available for public review on the Federal Register, Vol. 81, No. 101: Comments will be accepted through the Federal e-Rulemaking Portal through July 25, 2016. Instructions for submitting comments are outlined in the Interim Final Rule.

Policy Notice 5000-1939, published on November 17, 2016 provides updates to the policies associated with the 504 Debt Refinancing regulations. The Notice is published on the For-Lenders section of the SBA website.

Policy Notice 5000-1382, published on May 26, 2016 details the policies associated with the 504 Debt Refinancing regulations. The Notice is published on the For-Lenders section of the SBA website.

Information Notice 5000-1383, published on June 6, 2016, outlines changes made to 504 Program forms to accommodate the 504 Debt Refinancing Program. The Info Notice is published on the For-Lenders section of the SBA website.

Forms detailed on the Policy Notice include: