SBA 504 Refinance in Georgia: How It Works

If you own your building and are paying more than you want on the loan against it, the SBA 504 Refinance Program may be worth a look. This guide explains how the SBA 504 refinance works in Georgia, who qualifies, how much you can finance, and what the process looks like from first call to closing.

We wrote it the way we would walk a business owner through it across the desk. Where a rule depends on your situation, we say so, and we point out where you should check with your accountant or attorney.

Quick Summary

• The SBA 504 Refinance Program lets an established business refinance eligible commercial real estate or equipment debt into a long-term, fixed-rate 504 structure.
• The debt being refinanced generally must have been used mostly (75 percent or more) to buy or improve fixed assets like land, buildings, or long-life equipment.
• Your business typically must have operated for at least two years, and you must be current on the existing loan payments for the past 12 months.
• In most cases, the bank loan plus the 504 loan can total up to 90% of the property's appraised value, with at least 10% equity left in the property.
• The 504 portion is generally capped at 40% of value, and the bank's first-lien loan must be at least as large as the 504 portion.
• For an existing building, your business typically needs to occupy at least 51% of it.
• Rates on the 504 portion are set monthly. See the September 2026 table below and confirm current rates with GSBC before you decide.

What Is the SBA 504 Refinance Program?

The SBA 504 Refinance Program is an SBA-backed way for a business to replace existing commercial real estate or equipment debt with a standard 504 financing package. A Certified Development Company (CDC) like Georgia Small Business Capital provides the 504 portion. A bank or credit union provides the larger first-lien loan, meaning the loan that is first in line to be repaid from the property if something goes wrong.

The idea is simple. Instead of carrying a loan that reprices or comes due in a few years, you move into a structure with a long-term fixed rate on the CDC portion. The program is also sometimes called 504 debt refinancing or the 504 refinance without expansion, since the business does not have to be expanding to use it.

You can read how GSBC describes the program on our SBA 504 Refinance Program page.

Who Qualifies for an SBA 504 Refinance in Georgia?

Every deal is reviewed on its own facts, but these are the main tests we look at first:

• Operating history. Your business typically needs to have been operating for the full two years before you apply.
• Payment history. You generally must be current on all payments on the debt being refinanced for at least the past 12 months.
• Age of the debt. The existing debt generally must be at least six months old when you apply.
• Use of the original loan. At least 75 percent of the original loan proceeds should have gone toward eligible fixed assets, such as buying a building or equipment.
• Occupancy. For an existing building, your business typically must occupy at least 51 percent of it. You can usually lease out the rest.
• Business size. You must meet SBA size rules. One common test is tangible net worth under $20 million and average net income under $6.5 million for the prior two years, though other size standards can apply.
• A real benefit to you. The new payment on the refinanced portion generally has to be lower than what you pay today.

These rules come from SBA regulations and the SBA's lender operating manual, SOP 50 10. The SBA updates that manual from time to time, so we confirm the current version at the start of every deal.

What Kinds of Debt Can Be Refinanced?

Most often, it is a conventional commercial mortgage on a building the business occupies, or an existing 504 loan. Loans used to buy long-life equipment can also qualify. Debt that was used mainly for working capital or other non-fixed-asset purposes usually does not meet the 75 percent test.

How Much Can You Finance With a 504 Refinance?

A 504 refinance uses the same three-part idea as a regular SBA 504 loan: a first-lien lender, the CDC, and you. The limits are based on the current appraised value of the property.

Here is a hypothetical example at the upper end of what the rules allow. Say a Georgia dental practice owns a building appraised at $2 million. This is an illustration only, not a quote or a promise of approval.

SourceShare of ValueHypothetical AmountBank or credit union first-lien loan50%$1,000,000504 loan through the CDC40%$800,000Owner equity remaining in the property10%$200,000Total value100%$2,000,000

In that example, the most that could be refinanced is $1.8 million ($1,000,000 plus $800,000), which is 90 percent of the $2 million value. If the current loan balance is lower, the refinanced amount is lower too. In many deals the 504 portion is smaller than the 40 percent ceiling.

The 504 portion has a program maximum as well. SBA lists a maximum 504 loan of $5.5 million for most projects.

Can You Take Cash Out?

In some cases, yes. The SBA has allowed part of a refinance project to cover eligible business expenses, such as working capital, as long as the total stays within the program limits. The rules for this have changed more than once in recent years, so we review the current SBA guidance with you before we talk about numbers.

What Are SBA 504 Refinance Rates in Georgia?

The 504 portion carries a fixed rate for the life of that loan, with terms of 10, 20, or 25 years. SBA debenture rates, which are the rates on the CDC portion, are set monthly and change. The table below shows the rates published on the GSBC website for September 2026.

September 2026 RatesRefinance Rate25-year refinance6.544%20-year refinance6.538%10-year refinance6.618%

Your bank's rate on the first-lien portion is set separately by that lender. Your blended cost depends on both pieces, plus fees. Ask for the current month's table and a full cost breakdown before you decide.

How Does the SBA 504 Refinance Process Work?

Most refinances follow the same path. Timing varies with the property, the lender, and how quickly documents come in, so treat this as a typical order of events rather than a schedule.

1. Review your current loan. Gather the note, recent payment history, and original closing documents so we can confirm the debt qualifies.
2. Talk with GSBC. We check your eligibility, estimate the structure, and explain the likely costs.
3. Line up a first-lien lender. Your bank or credit union provides the larger share of the financing.
4. Order the appraisal. The property's current value sets the limits on how much can be financed. An environmental review may also be required.
5. Submit to the SBA. The CDC prepares the package and sends it for SBA review and approval.
6. Close. The first-lien loan pays off the old debt, and the 504 loan is funded later through the sale of an SBA-backed debenture, which is a bond that funds the CDC portion.

For more on how we run a deal from start to finish, see our proven process.

Is a 504 Refinance Right for Your Business?

It often makes sense when you plan to keep the property for a long time and want a stable payment on a large part of the debt. It may fit less well if you plan to sell soon or if your current loan has terms you are happy with.

Things to weigh:

• Payment stability. A fixed rate on the CDC portion can make long-term budgeting easier.
• Total cost. Compare fees and all-in costs, not only the rate.
• Exit costs. Ask about prepayment terms on both the bank loan and the 504 loan before you commit.
• Your existing loan. Check whether your current lender charges a prepayment fee for paying it off early.
• Tax questions. Refinancing can affect how you account for loan costs and interest. We explain general concepts only, so talk with your CPA or attorney about your own situation.

The Short Answer for Georgia Owners Thinking About a Refinance

The SBA 504 Refinance Program is built for established businesses that own their building or equipment and want longer-term, fixed-rate financing on part of their debt. It has real requirements, including time in business, payment history, and occupancy, and it is never guaranteed.

The best next step is to pull your current loan documents and the last 12 months of payment history, then talk it through with someone who does these deals every week. If you own property anywhere in Georgia, from metro Atlanta to Savannah to Macon, call GSBC at 404-373-8601 or contact our team online. After more than 35 years helping Georgia business owners, we are glad to tell you plainly whether a 504 refinance looks like a fit.

Frequently Asked Questions

Can I refinance my commercial mortgage with an SBA 504 loan?

Often, yes, if the mortgage was used mostly for eligible fixed assets, you have operated for at least two years, and you have been current on payments for the past year. The property also has to meet the occupancy rules. GSBC reviews the loan documents to confirm.

How old does my existing loan need to be for a 504 refinance?

Generally, the debt must be at least six months old when you apply. Other tests, such as the 12-month payment history, apply on top of that.

Do I have to occupy the building to use the SBA 504 refinance program?

Yes, in most cases. For an existing building, your business typically must occupy at least 51 percent of it. You can usually lease the remaining space to other tenants.

Is the interest rate on an SBA 504 refinance fixed?

The 504 portion carries a fixed rate for its term. The bank's first-lien loan is priced separately by the lender, and it may be fixed or adjustable depending on the lender and the loan.

How long does an SBA 504 refinance take in Georgia?

It varies. Many refinances take a few months from the first conversation to closing, and the appraisal, SBA review, and how fast documents arrive all affect timing. We can give you a realistic estimate once we see your file.