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Yes, you can re-finance your current loan with a SBA - but remember, you still have to meet your lender's (or the bank offering the SBA loan) requirements. The SBA will just look at it as a new loan - plus, watch fees. SBA fees (although coming down as part of their new programs) are usually higher than traditional loans. You best bet is to shop around (try to do so without letting lenders pull your credit). It is always good to look for reduced fees - but also make sure that lenders who have the lowest fees are not making that up on the back side with higher rates. You must look at the entire cost of the loan - not just the fees.
Business Money Today
Thanks for your response. I may do some shopping around.
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I have a loan on a frozen dessert business that my co-owner and I opened 6+ years ago. We have a 15-yr am with a 5-yr balloon note that's coming due soon. Our current traditional bank has said they will renew the loan (pending loan approval of course) and we can request that the new loan be spread back out over 15 years and that our current line of credit balance be rolled into the new loan. The renewal fee is far less than traditional closing costs of a new loan but I'd like to explore other options to be sure the terms we get are reasonable. I've heard SBA loan terms have become more attractive recently. Are re-fi loans eligible for SBA? And assuming our credit is good, are traditional banks typically the best way to go?