Additional Changes in Temporary Debt Refinancing: 

There are several changes to the 504 temporary debt refinancing program.  Here is list of the changes followed by the details.   Please call EDF with questions at 616.459.4825.

1) Appraisals No Longer Required At Application 

2) Clarification - Multiple Loans

3) Extension of Disbursement Period

Details -

1)  Appraisal - The application submitted to SBA may include an estimate of the value of the collateral on a refinancing project instead of requiring an appraisal with the application.  An independent appraisal of the fair market value of the fixed assets must be submitted prior to closing (whether commercial or residential).  If the appraisal amount is different than the estimate, then the project will need to be restructured to reflect the different value.   

2)  Multiple Loans - The debt that is being refinanced may consist of a combination of one or more commercial loans, provided that each of the loans separately satisfies the requirements.    

3)  Six Month Expiration - Under current rules, 504 loans must be disbursed within 6 months after loan approval; however, the request for extension of the disbursement period for good cause may be approved. This extension may be up to an additional 3 months.  

Please call EDF for any questions in regards to these changes.  SBA continues to be open to changes in the Temporary Debt Refinancing program to assist as many small businesses as possible!