Refinance Your SBA Loan to Lower Your Monthly Payment
Many small business owners are discovering that refinancing their existing SBA loan can lead to major monthly savings. With SBA fixed-rate loans now available at rates under 8%, there’s never been a better time to explore refinancing opportunities. Check out our handy SBA loan refi calculator to see how much you can save.
Real SBA Loan Refinance Examples
At SbaLenders.com, we connect borrowers with SBA bankers across the country who are ready to evaluate refinancing options and help you save money.
Here are a few examples of how much businesses can save by refinancing their current SBA loan:
| Original Loan | Current Balance | Old Rate | New Rate | Old Payment | New Payment | Monthly Savings | % Savings |
|---|---|---|---|---|---|---|---|
| $500,000 | $450,000 | 10.00% | 7.75% | $6,608 | $5,400 | $1,207 | 18% |
| $1,000,000 | $500,000 | 10.00% | 7.75% | $7,215 | $6,001 | $7,215 | 55% |
| $2,500,000 | $2,000,000 | 10.00% | 7.75% | $33,037 | $24,002 | $9,036 | 27% |
| $5,000,000 | $4,500,000 | 10.00% | 7.75% | $66,075 | $54,005 | $12,070 | 18% |
These examples show how even a small drop in interest rate can result in thousands of dollars saved each month.
Top 10 FAQs About SBA Loan Refinancing
1. Do I need to save at least 10% on my monthly payment to qualify?
Yes. SBA rules require the borrower to save at least 10% on their monthly payment for the refinance to be eligible—this ensures that the loan provides a “substantial benefit.”
2. Can I refinance an SBA 7(a) loan with another 7(a) loan?
Yes, SBA allows refinancing of an existing 7(a) loan with a new 7(a), assuming the 10% savings rule and other qualifications are met.
3. Can I refinance a 504 loan with a 7(a) loan?
Generally, you cannot refinance a 504 loan with a 7(a) loan unless specific circumstances are met. Check with your SBA banker for eligibility.
4. Can I include working capital in a refinance loan?
Yes. Some SBA lenders will allow you to roll working capital into your refinance if there’s sufficient cash flow and collateral.
5. Can I refinance non-SBA loans into an SBA loan?
Yes, SBA 7(a) loans can be used to refinance commercial loans from non-SBA lenders if the terms are improved and the 10% savings test is met.
6. Are merchant cash advances (MCAs) eligible for refinance?
No. As of June 1, 2025, SBA loans cannot be used to refinance merchant cash advances or factoring agreements.
7. Can I refinance multiple loans into one SBA loan?
Yes. SBA allows multiple debts to be consolidated into one 7(a) loan as long as they meet eligibility and benefit requirements.
8. What are typical SBA refinance terms?
Loan terms are usually 10–25 years depending on collateral type. Most fixed-rate loans for real estate are 25 years, while working capital loans are usually 10 years.
9. Do I need to revalue my collateral for a refinance?
Not always. It depends on the lender and the size of the loan. Some lenders may require updated appraisals or valuations.
10. How long does it take to complete an SBA refinance?
It typically takes 30 to 45 days depending on the lender and how quickly you provide the required documents.
Ready to Explore Your SBA Refinance Options?
If you’re paying over 9% or 10% on your current SBA loan, it’s worth checking to see how much you could save. Some SBA lenders are now offering fixed-rate loans below 8%, even for high-dollar loans.
SbaLenders.com can match you with a qualified SBA banker who will evaluate your refinance scenario and walk you through the process.