In late May of this year the Small Business Administration (“SBA”) has re-established the debt refinancing program consistent with the more well- known SBA 504 loan programs. The 504 loan program was historically only available to purchasers of commercial property. The debt refinancing program, while available several years ago, was temporary. The program, which expired in 2012, is has now been made permanent.

The benefit of SBA financing, and more specifically, debt refinancing, is that borrowers who are approved and funded have a fixed mortgage rate for 20 years. In today’s commercial loan market, it is very difficult to obtain fixed rate financing, and almost never for 20 years. Also, the interest rates which are set at funding have recently seen historic low rates. For June 2016, the 20 year rate was about 4.3%.