Can an SBA Express line of credit be reissued?

Yes. A lender can issue a new SBA Express loan to refinance a current one before amortizing payments begin (SOP 50 10 8.1, Sec. B, Ch. 2, Para. B.3.b). Appendix 17, Paragraph B.3 repeats it.

Option 1: keep the line

The new Express loan restarts the revolving period. The lender must address overall line utilization in its credit memo and justify why the line needs to be retained.

Option 2: term it out

Here, a new SBA Express loan can refinance an existing one before amortizing payments begin, with a term of up to 10 years and no new revolving period. This option expressly allows a longer amortizationamortizationPaying a loan down on a schedule, so each payment covers interest and part of the balance. Full definition than the first loan's repayment term.

Limits on any Express line

• The maximum term is 10 years, including any term-out period.
• There can be no advances after the first 60 months.
• A revolving loan of more than 12 months needs a term-out period at least as long as the draw period.

Once the loan is amortized, no additional draws are permitted (App. 17, Para. B.3). The reissue options above apply only before amortizing payments begin.

Moving to a larger line

A growing business can also move from Express to the 7(a) Working CapitalWorking CapitalMoney for day-to-day costs such as payroll, rent and inventory. Full definition Pilot. SBA waived 13 CFR 120.452(a)(2) so lenders can refinance a same-institution Express loan into a pilot line (89 FR 57353). A given lender may or may not offer either path.