Debt Refinancing

Refinance Your Business Debt with SBA 7(a) Loans

Lower your interest rates, reduce monthly payments, and free up cash flow by consolidating your business debt into a single, manageable SBA 7(a) loan.

What You Can Refinance

Consolidate multiple forms of business debt into one SBA 7(a) loan

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Existing Business Loans

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Commercial Mortgages

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Lines of Credit

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Equipment Loans

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Merchant Cash Advances

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High-Interest Debt

Why Consolidate?

Consolidating multiple debts into a single SBA 7(a) loan simplifies your finances, typically results in lower interest rates, extends your repayment terms, and reduces your total monthly payment obligations.

Key Benefits of Refinancing

Transform your debt strategy and improve your bottom line

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Lower Interest Rates

SBA 7(a) loans often provide better rates than credit cards, merchant cash advances, or other high-cost debt. Get competitive rates based on your creditworthiness.

Longer Terms

Extend repayment periods up to 10 years for working capital or longer for asset-based loans, reducing pressure on monthly cash flow.

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Reduced Monthly Payments

By consolidating at better rates and terms, your monthly payment burden decreases significantly, improving cash availability.

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Consolidate Multiple Debts

Simplify management by combining all business debts into a single monthly payment. No more juggling multiple lenders.

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Improve Cash Flow

Free up working capital previously tied up in debt payments. Use it for growth, inventory, payroll, or strategic investments.

Build Business Credit

Successfully managing an SBA loan strengthens your business credit profile and demonstrates reliability to future lenders.

Key Loan Details

Flexible financing structured to match your refinancing goals

Loan Amount

Up to $5MM

SBA 7(a) maximum for refinancing

Repayment Terms

Varies

Based on original purpose of debt

Interest Rates

Competitive

Based on credit and market conditions

Understanding the Terms

Interest Rates

SBA 7(a) refinancing loans typically feature rates from 6.5% to 10%, depending on your credit score, loan amount, down payment, and current market conditions.

Flexible Terms

Refinancing terms vary based on the original purpose of the debt. Working capital may have shorter terms (up to 7 years), while equipment and real estate have longer terms (up to 10+ years).

Refinancing Eligibility

Key requirements to qualify for an SBA 7(a) refinancing loan

Tangible Benefit Demonstrated

You must show that refinancing provides measurable benefit, such as lower interest rates, reduced monthly payments, or extended terms.

Existing Debt Must Be Current

All debts being refinanced must be current on payments. Borrowers with recent defaults or delinquencies may not qualify.

Established Business

We work with businesses at various stages. While a track record helps, we also evaluate projections and overall financial health.

Positive Debt Service Coverage

Your cash flow should support the refinanced debt payments. SBA 7(a) loans require a minimum 1.15x DSCR within 2 years of the note date. We evaluate both historical performance and projections to meet these requirements.

How the Refinancing Process Works

Four simple steps to refinance your business debt

1

Pre-Qualification

Share details about your business, current debts, and refinancing goals. Our AI analysis provides instant pre-qualification and estimated savings.

2

Documentation & Application

Gather required financial documents (3 years tax returns, P&L statements, bank statements, etc.) and complete the full SBA 7(a) application.

3

Underwriting & Appraisal

Our lender team reviews your application, verifies information, and initiates any required collateral appraisals or inspections.

4

Approval & Funding

Upon approval, you receive the loan funds. The proceeds pay off your existing debts, leaving you with a single SBA 7(a) payment.

Documents You'll Need

Have these ready to speed up your application process

Business Documents

3 years of business tax returns
3 years of personal tax returns (all owners 20%+)
Recent profit & loss statements (YTD)
Current business balance sheet
Last 3 months of business bank statements
Statements for all debts being refinanced

Personal & Additional Documents

Personal Financial Statement (SBA Form 413)
Personal credit authorization
Résumé or business background summary
Business license and permits
Articles of incorporation/organization
Debt payoff information for each loan

📋 Download SBA Form 413 Template

The Personal Financial Statement (SBA Form 413) is a critical document that shows your personal assets and liabilities. Download our template to prepare it before applying.

Download SBA Form 413 Template

Real Refinancing Example

See how an SBA 7(a) refinancing loan transformed a business's finances

Tech Solutions LLC

The Challenge

Tech Solutions LLC had grown successfully but was struggling with high-interest debt. They had multiple loans at varying rates and terms: a credit card at 18% APR, a merchant cash advance costing 42% annually, and a traditional term loan at 12%. Their monthly debt payments totaled $9,200 and were draining cash flow.

The Solution: SBA 7(a) Refinancing

Before Refinancing (Monthly):

Credit Card (18% APR):$2,100
Merchant Cash Advance:$3,500
Term Loan (12%):$3,600
Total Monthly:$9,200

After SBA 7(a) Refinancing (Monthly):

Single SBA 7(a) Loan (8.5% interest):$5,800
Total Monthly:$5,800

Monthly Savings

$3,400

That's $40,800 per year freed up for growth, payroll, and operations.

Results

    Consolidated 3 high-interest debts into 1 simple payment
    Reduced average interest rate from 18% to 8.5%
    Freed up $3,400/month in cash flow
    Simplified financial management with single lender
    Used savings to hire two new employees
    Improved business credit profile

Frequently Asked Questions

Can I refinance multiple debts with one SBA 7(a) loan?

Yes, that's one of the key benefits. You can consolidate existing business loans, lines of credit, equipment loans, and even merchant cash advances into a single SBA 7(a) loan.

How much can I save by refinancing?

Savings vary based on your current interest rates, terms, and the new loan terms. Many businesses save thousands per year in reduced interest payments. Use our pre-qualification tool to get a personalized estimate.

What if my credit score isn't perfect?

SBA loans are more flexible than conventional lending. We evaluate your complete financial picture including cash flow, collateral, and business performance. Strong credit helps, but it's not the only factor we consider.

Can I refinance debt that is behind on payments?

Unfortunately, no. All debts being refinanced must be current on payments. If you're behind, contact your lender to catch up first, then apply for refinancing.

How long does the refinancing process take?

Typically 30-45 days from application to funding, depending on document completeness and appraisal timing. Faster decisions are possible with complete documentation.

Will refinancing hurt my credit score?

There may be a small initial impact from the credit inquiry, but consolidating debt actually improves your credit over time by reducing your debt-to-income ratio and simplifying your payment history.

What if I want to refinance but my business is new (less than 2 years old)?

While established businesses have an advantage, newer businesses can qualify with strong projections, solid financial performance, and demonstrated cash flow. Contact us to discuss your specific situation.

Are there prepayment penalties with SBA 7(a) loans?

No, SBA 7(a) loans typically allow prepayment without penalty. You can pay off the loan early to save on interest if your cash flow improves.

Ready to Lower Your Debt Payments?

Get pre-qualified in minutes with our AI-powered analysis. Find out how much you could save with an SBA 7(a) refinancing loan and get on the path to better cash flow.

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