Businesses with variable-rate SBA 7(a) loans can refinance into SBA 504 fixed-rate financing at approximately 5.75-7.00% for 25-year terms. This conversion eliminates interest rate adjustment risk, reduces monthly payments in most rate environments, and provides long-term payment certainty. Properties must be owner-occupied with at least 51% borrower use.
Written by Ed Freeman, Capital Advisory — PeerSense
Convert your variable-rate SBA 7(a) loan to a 25-year fixed-rate SBA 504. Lock in 25-year fixed rates typically 6.5%–7.5% and eliminate rate adjustment risk. Available for owner-occupied commercial properties.
Minimum 30-35% equity required. Business owners with existing SBA 7(a) variable-rate loans on owner-occupied commercial real estate who want to lock in a long-term fixed rate and reduce monthly debt service.
LTV Target
Variable to Fixed
Est. Rate Range
6.5% – 7.5% (SBA 504 fixed)
Term
25 years fixed (real estate) / 10 years (equipment)
Recourse
Full recourse (personal guarantee)
DSCR
1.15x minimum
Closing Speed
60-90 days
Min Loan Size
$250K
Loan Products
SBA 504
This refinance is the right move when your SBA 7(a) variable rate has climbed above your comfort level and you want payment certainty for the next 25 years. Many 7(a) borrowers took loans at Prime + 2.75% when Prime was 3.25%, resulting in a 6.00% all-in rate. With Prime now at 7.50%+, that same loan costs 10.25%+. Converting to a 504 fixed rate at 5.75-7.00% can reduce annual debt service by 20-30%. You must have owned the property for at least 2 years, the property must be owner-occupied (51%+), and your business must be current on all SBA obligations.
If you are acquiring a new property rather than refinancing existing SBA debt
Learn moreIf your SBA 7(a) is specifically on a hotel property
Learn moreIf your property is investor-owned (not owner-occupied) and does not qualify for SBA
Learn morePeerSense pre-underwrites every deal before presenting it to our institutional capital sources. With 500+ lender relationships and live market rate intelligence, we match your mixed (owner-occupied cre) deal with the right capital source — right now.
No upfront retainer · Fee at closing only · Complimentary initial consultation
Written by Ed Freeman, Capital Advisory — PeerSense. Updated March 2026.
Disclaimer: The information on this page is provided for educational purposes only and does not constitute financial, legal, or investment advice. Rates, terms, and availability are subject to change based on market conditions, property characteristics, and borrower qualifications. The rate ranges cited reflect approximate market pricing as of March 2026 and may not reflect current conditions at the time of reading. PeerSense is a capital advisory firm, not a lender. We do not originate, fund, or service loans. All financing is provided by third-party lenders subject to their own underwriting criteria and approval processes. Borrowers should consult with qualified financial and legal professionals before making any financing decisions.