SBA Allows Refinancing of Commercial Real Estate in the SBA 504 Program

200 peachtree announcement from CUBS LLC
200 Peachtree
May 19, 2016
246 Sycamore Street office building
246 Sycamore Street
June 23, 2016
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ATLANTA (June 16) – Credit Union Business Services (CUBS) is providing refinancing of commercial real estate in the new SBA 504 refinance program.

SBA Logo

“We are very excited to be active in this important segment of the real estate market,” says CUBS Executive Vice President, David Polevoy. “Working with the business owners in our communities is of central importance to our credit union partners.”

The rebirth of this refinance program was recently made official and the SBA begins accepting refinance applications June 24, 2016. No longer will the program be solely directed toward the acquisition of commercial real estate. Now, owners of businesses who also own the commercial real estate where the company operates can utilize the SBA 504 program to refinance qualified debt. The borrower’s operating company must occupy at least 51% of the property at the time of application.

Qualified debts that can be refinanced include any conventional loans secured by the property for which at least 85% of the proceeds were used for the property and the remainder used for business purposes. The debt has to be at least two years old as of the date of application. The debt to be refinanced cannot be a third-party-loan or an SBA loan.

The program provides financing up to 90% of the property’s appraised value. However, some businesses may have a much smaller debt to refinance. In these cases, as long as there is some amount of eligible debt to refinance, the borrower can request cash-out for eligible business expenses. For cash-out loans the financing is limited to 75% of the property’s appraised value, and the amount of cash out is limited to 25% of the property’s appraised value.

Eligible business expenses include expenses already incurred but not yet paid as of the date of application, or expenses that will become due for payment within 18 months after the date of application.

CUBS is currently accepting applications for the SBA 504 refinance program.

For more information about Credit Union Business Services (CUBS), please visit

About CUBS

CUBS was formed in 2003 as a Credit Union Service Organization (CUSO). CUBS provides commercial real estate services to borrowers on behalf of credit unions across Georgia and credit unions in Tennessee and South Carolina.

CUBS is a center of commercial real estate expertise which enables the owners of commercial real estate to tap into the relationship, capital and benefits provided by credit unions, that are not available through traditional lending sources including banks, conduits, life companies and CMBS lenders.

Our relationships with commercial borrowers and brokers are expanding each year as the value of our services becomes more widely known and appreciated. CUBS originates, underwrites, closes and services commercial mortgages. We have processed commercial real estate mortgages on behalf of more than 20 credit unions. Each year additional credit union lenders seek to put money to work through CUBS.

We know our borrowers and our borrowers appreciate knowing that we are here to serve them. If you are making an acquisition or plan to refinance, contact us about your commercial mortgage. For more information about Credit Union Business Services (CUBS), please visit



Sandra Eide
Excel Federal Credit Union
5070 Peachtree Industrial Blvd.
Peachtree Corners, GA 30071