SBA 504 Refinance Case Study
A decade ago, Susan bought the property where her business is located for $800,000. At that time, she paid 25% and took out a $600,000 loan at 5.5% with a 20-year amortization. Her current payment is $4127 monthly. This means after a decade of payments, she still owes $450,000. Her business has been successful, but she is netting less than before due to inflation and competition. Over the years, she has had to borrow on various loans and credit cards to purchase business assets or meet cash flow needs. If we determine that she owes $100,000 on various lines and cards and her payments are approximately $2,000 monthly, then her debt appears as below:







