SBA 504 Refinance Rules in Montana for Business Now

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This article was authored and professionally reviewed to provide accurate, actionable financial insights.

GHC Funding

GHC Funding

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Alyssa writes about real estate investing, debt-free strategies, and emerging trends in small business finance with a focus on practical insights.

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Samantha Reyes

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SBA 504 Refinance Rules in Montana: A Guide for Small Business Owners

Meet Jane, a small business owner in Montana. Jane has been running her business, a popular boutique in Billings, for over 10 years now. Despite her success, she has been struggling with high interest rates on her current commercial mortgage loan. With the recent decrease in interest rates, Jane is wondering if refinancing her loan would be a smart move for her business. Fortunately, with the SBA 504 Refinance Program, Jane has the opportunity to do just that.

What is the SBA 504 Refinance Program?

The SBA 504 Refinance Program is a government-backed loan program designed to help small business owners like Jane refinance their existing commercial mortgage loans. This program allows small businesses to take advantage of lower interest rates and better loan terms, ultimately helping them save money and improve their cash flow.

Who Needs the SBA 504 Refinance Program?

Any small business owner in Montana who has an existing commercial mortgage loan and is struggling with high interest rates or unfavorable loan terms can benefit from the SBA 504 Refinance Program. This program is also a great option for business owners who are looking to free up some cash flow for business expansion or other investments.

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Why do Montana Businesses Benefit from the SBA 504 Refinance Program?

Montana is known for its strong and diverse small business community. However, like Jane, many business owners in the state face challenges when it comes to securing affordable financing for their businesses. With the SBA 504 Refinance Program, Montana business owners have access to low interest rates and longer repayment terms, making it easier for them to manage their cash flow and invest in their businesses.

Moreover, the program also allows business owners to refinance up to 90% of the appraised value of their commercial property, freeing up additional capital for their business needs. This is a significant advantage, especially for small businesses in cities like Bozeman and Missoula, where the cost of real estate is higher compared to other parts of the state.

Understanding the SBA 504 Refinance Rules

Now that we have a better understanding of what the SBA 504 Refinance Program is and who can benefit from it, let’s take a closer look at the rules and requirements for this program. Being aware of these rules can help Montana business owners like Jane make an informed decision about whether the program is right for them.

Credit Score Requirements

The SBA does not have a specific credit score requirement for the 504 Refinance Program. However, most lenders will require a credit score of at least 680 for the primary business owner. Additionally, any other business owners with a 20% or more ownership stake will also need to meet this credit score requirement.

Approval Process and Timeline

The approval process for the SBA 504 Refinance Program is similar to that of a traditional commercial mortgage loan. The timeline for approval can vary depending on the lender and the complexity of the application. However, on average, it takes about 45-60 days for an application to be approved.

Common Mistakes Montana Business Owners Make

When it comes to applying for the SBA 504 Refinance Program, Montana business owners can make a few common mistakes that can delay or even jeopardize the approval of their loan. Here are three mistakes to avoid:

  • Not providing accurate and up-to-date financial information
  • Not having a solid business plan in place
  • Not working with an experienced and reputable lender

Real Case Study: How the SBA 504 Refinance Program Helped a Business in Butte

ABC Manufacturing, a small business in Butte, had been struggling with high interest rates on their commercial mortgage loan for years. With the help of GHC Funding, they were able to refinance their loan through the SBA 504 Refinance Program. This allowed them to lower their monthly mortgage payment from $5,000 to $3,500, giving them an extra $1,500 each month to invest back into their business. This helped ABC Manufacturing grow and expand their business, ultimately leading to an increase in revenue and profitability.

Frequently Asked Questions about the SBA 504 Refinance Program

1. Can I use the SBA 504 Refinance Program to pay off other debts?

No, the program is strictly for refinancing existing commercial mortgage loans.

2. Can I refinance my loan through the SBA 504 Refinance Program if I have an existing SBA loan?

No, the program is only for refinancing non-SBA commercial mortgage loans.

3. Can I use the SBA 504 Refinance Program to refinance multiple properties?

Yes, as long as they are all eligible for the program and meet the required criteria.

4. Can I use the program to refinance a loan for a property that is not the primary location of my business?

Yes, as long as this property is more than 51% owner-occupied by your business.

5. How much of my existing loan can I refinance through the program?

You can refinance up to 90% of the appraised value of your commercial property.

Ready to Refinance? Contact GHC Funding Today

Are you a small business owner in Montana looking to refinance your commercial mortgage loan? Don’t miss out on the opportunity to save money and improve your cash flow with the SBA 504 Refinance Program. Contact GHC Funding today and let our experienced team guide you through the process. We have helped numerous businesses in Montana take advantage of this program and we can help you too. Let’s discuss your options and get you on the path to a better loan for your business.

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