It is possible to refinance your SBA loan after its approval. But it is important to note that this is only possible under specific circumstances. The SBA officially says that existing SBA loan refinancing will only be considered if, “the borrower has new financing needs that the existing lender has declined or the existing lender has refused to modify the terms of the existing SBA loan to accommodate the new loan.” However, it is important to understand what this wording means in practice. As an SBA loan borrower, you must first reach out to your existing SBA lender. In order to seek additional funds, a new interest rate, or modified payment terms. Only if this is unsuccessful could you then attempt refinancing with another bank offering SBA loans.
Due to these strict requirements for refinancing with the SBA. Our team at Vetted Biz believes it is very important that you find the right lender for your financing needs when initially seeking your SBA loan. We have put together a list of the top 25 SBA lenders based on research into loan terms and success in past years. Be sure to look into each lender’s profile to learn which lender is right for your business’s needs. Finally, it is important to note that business owners who initially did not take advantage of the SBA’s loan programs could later through refinancing .Non-SBA loans are eligible for refinancing through the SBA’s 7(a) loan program if their original loan would have been SBA eligible.