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Can pre-existing debt on the Project Property be refinanced with SBA 504 Project Loan Proceeds?

April 26, 2017debt loan pre-existing proceeds project Property refinanced SBA

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Can pre-existing debt on the Project Property be refinanced with SBA 504 Project Loan Proceeds?

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Sometimes. When the Project Property is land and building, and it was acquired less than nine months before the application is received by SBA, the financing used to acquire the land and building could be considered “interim financing” and be eligible to be paid-off with 504 loan proceeds.