# Can an SBA loan refinance business credit cards?

**Short answer:** Yes. Credit card debt is eligible if the applicant certifies the proceeds were used exclusively for the business (SOP 50 10 8.1, App. 14, Para. A.1.c). It is exempt from the payment test, and the lender can rely on your certification.

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Last checked: 2026-11-08

Yes. Credit card debt used for business expenses can be refinanced under Appendix 14, Paragraph A.1.c of SOP 50 10 8.1. It is eligible if the applicant certifies the proceeds were used exclusively for the business.

## What the certification covers

You certify that the card debt was used exclusively for the business and not for any ineligible purpose under 13 CFR 120.130. SBA Form 1919 and the disbursement certifications repeat the statement for any credit card, home equity line of credit (HELOC) or balance sheet debt (Sec. B, Ch. 6, Para. D.8).

If the certification later proves invalid, SBA will not use that to deny or repair the lender's guaranty purchase request. The lender can rely on it (Para. A.1.c).

## The payment test does not apply

Credit card obligations used for business purposes are excepted from the payment improvement rule (App. 14, Para. A).

## Other conditions still apply

- Card debt must be current for at least the last 12 months or the life of the loan, whichever is less.
- The lender must include the most recent statement showing the holder of the account and the current balance.
- A creditor receiving $10,000 or more must be itemized in the SBA Terms and Conditions.

## 504 is different

A 504 project can include cards only as Eligible Business Expenses in a debt refinance without expansion. The card must be in the name of the small business (Sec. C, Ch. 1, Para. C.10.a.iv).

## Sources

- [SOP 50 10 8.1, App. 14, Para. A, General Requirements, Para. A.1.c and Ten Percent Improvement to Installment Payment Amount (p. 355)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [13 CFR § 120.130](https://www.ecfr.gov/current/title-13/section-120.130)
- [SBA Form 1919 (02/2025), certifications](https://legacy.sba.gov/document/sba-form-1919-borrower-information-form)
- [SOP 50 10 8.1, Sec. B, Ch. 6, Para. D.8, Borrower Certifications (Para. D begins p. 207)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. C, Ch. 1, Para. C.10.a.iv, Eligible Business Expenses (Para. C begins p. 226)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)