Debt Refinance Guide | Grow Michigan

There has never been a better time to refinance existing debt with the SBA 504 Loan Program!

Payment Forgiveness – Borrower may be eligible for 6 months of payment forgiveness; Call one of our loan officers for details
Record Low Interest Rates
Cash Out – Provide needed liquidity for eligible business expenses
Improve Bank’s LTV
Improve Borrower’s Cash Flow

90% LTV; equity serves as injection
Original debt incurred 2+ years ago
85%+ of original use of proceeds for commercial real estate, equipment, and other FF&E
100% incurred for the benefit of the business
NO change of ownership in business for past 2 years
Current on all payments for past 12 months
No modifications in past 12 months except for extension of term
No current federally guaranteed debt (i.e., SBA 504, SBA 7(a), USDA guarantee, etc)

Current note & lien/security instruments
12 month payment transcript
Total project costs may include CASH OUT for “Eligible Business Expenses” including salaries, rent,
utilities, inventory or other business obligations that are incurred but not paid or that will be due
within 18 months of application (cash out limited to 20% of total value; max. amount of 85% LTV)
Estimated value of assets included in total project costs – subject to appraisal prior to loan closing
Two most recent years of business and personal tax returns (principals owning 20% or more)
Interim financial statements within 90 days of application, including balance sheet, income
statement, A/R & A/P aging reports, and debt schedule