# How old does a debt have to be for an SBA refinance?

**Short answer:** Appendix 14 of SOP 50 10 8.1 sets no general minimum age. Debt must be current for at least the last 12 months or the life of the loan, whichever is less. Specific rules apply to seller notes, converted merchant cash advances and 504 debt.

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Last checked: 2026-11-09

SBA sets no general minimum age for 7(a) refinancing (SOP 50 10 8.1, App. 14, Para. A). The debt must only be current for at least the last 12 months or the life of the loan, whichever is less. A younger loan is judged over its whole life.

## Where a waiting period applies

- **Seller notes.** A seller note can be refinanced after it has been in place and current for 36 months (App. 14, Para. A.1.g).
- **Merchant cash advances.** One is eligible for refinancing only if the agreement has been converted to a term loan, has amortized for at least 24 months and no new agreements followed; an active agreement is not eligible (App. 14, Para. A.3).
- **504 refinance without expansion.** Qualified Debt must have been fully disbursed at least 6 months before the application. It must also have been secured by Eligible Fixed Assets for at least 6 months (Sec. C, Ch. 1, Para. C.10.a).
- **504 refinance with expansion.** Payments must be current for 1 year before SBA approves the loan, or for the time the debt has been open if shorter (Sec. C, Ch. 1, Para. C.11.b.vii).

## Same-institution and interim debt

A lender refinancing its own debt needs a transcript covering the prior 36 months, or the life of the loan if shorter (App. 14, Para. A.4.d). A non-construction interim loan the lender approved within 90 days before the Preferred Lender Program (PLP) loan number is not treated as same-institution debt (Para. A.4.e).

## Why a young debt still gets questions

The written analysis must give the reason the debt was incurred and why it no longer meets your needs (App. 14, Para. A). A recent debt needs a clear answer to both. A lender may also apply a seasoning period of its own.

## Sources

- [SOP 50 10 8.1, App. 14, Para. A, General Requirements, Paras. A, A.1.g, A.3 and A.4 (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)
- [SOP 50 10 8.1, Sec. C, Ch. 1, Paras. C.10.a and C.11.b.vii (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)