How Debt Refinancing financing works
SBA 7(a) loans may be used to refinance eligible business debt when the refinance meets SBA requirements, such as providing a substantial benefit to the borrower. SBA 504 loans may also refinance qualified debt connected to eligible fixed assets under specific program rules.
Lenders will review the current debt, its payment history, the purpose it originally served, and how the refinance improves the business's position.
Common business uses
- Consolidating multiple business loans or high-cost obligations
- Replacing short-term debt with longer-term financing
- Refinancing owner-occupied real estate or equipment debt
- Improving monthly cash flow through restructured terms
General eligibility considerations
- Existing debt was used for eligible business purposes
- Acceptable payment history on the debt being refinanced
- The refinance meets SBA benefit requirements where SBA financing is used
- Business cash flow supports the new debt structure
Documentation lenders typically request
- Business federal tax returns (typically the most recent three years)
- Personal federal tax returns for owners with significant ownership
- Year-to-date profit and loss statement and balance sheet
- Personal financial statement for each owner
- Business debt schedule listing current obligations
- Business formation documents and ownership structure
- Résumés or management background for key principals
- Current statements and notes for each debt being refinanced
- Payment history and payoff letters as requested
- Explanation of the original purpose of each obligation
Requirements vary by lender and program. Please do not send tax returns or other sensitive documents through our website form — we will provide a secure method when documents are needed.
The role Sapphire Holdings plays
- Help build a complete, accurate debt schedule
- Help evaluate whether a refinance appears worth pursuing
- Help present the request and its benefit clearly to lenders
Sapphire Holdings is not a lender and does not make credit decisions. The lender independently determines eligibility, rates, terms, and approval.