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Could a 504 Refinancing Loan Be Right for Your Business?

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Ameris Bank

If you’re a business owner, forecasting your expenses is an important, but complicated part of your job. If you have a loan with variable rates, forecasting can be especially hard since your interest payments can change over time. If you have a SBA 7(a) loan, ask your financial partner whether refinancing with an SBA 504 loan might be right for you.

This program lets you lock in a rate for up to 25 years on a portion of the balance owed. If you have a variable rate loan, you may be able to refinance that debt, saving on interest while locking in a lower rate. This can give you peace of mind during fluctuating market conditions and improve your short- and long-term cashflow. Unlike a traditional SBA 504 loan that requires equity contributions, oftentimes, the 504 refinancing program does not require any out-of-pocket cost.

“The 504 refinancing program allows borrowers to take advantage of a long-term fixed rate with the stability of knowing what their expense rate will be over time,” said Ameris Bank SBA National Sales Manager Eric Fought. “If a borrower is concerned about the rising interest rate market moving forward, the program could help them get to a more stable financial position.”

If you are interested in seeing if you qualify for the 504 refinance program, contact your commercial banker or reach out to one of Ameris Bank’s SBA lending experts to learn more.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

*All loans subject to approval.