# Can a 504 expansion refinance debt at another location?

**Short answer:** Yes, if the operation at the other location has the same NAICS code as the project location. The debt must have been incurred for the same small business, and the other expansion-refinance tests still apply (SOP 50 10 8.1, Sec. C, Ch. 1, Para. C.11).

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Last checked: 2026-11-08

Yes. The debt being refinanced does not need to be for assets at the project location, or for the same type of property. Source: SOP 50 10 8.1, Sec. C, Ch. 1, Para. C.11 (Para. C begins p. 226). The operation at the other location must have the same NAICS code as the project location.

## Which debts can be included

- The total can be one or more loans.
- The debts can be owed by an Operating Company, an Eligible Passive Company or both.
- The small business behind the debt must be the same one incurring the new project costs.

## The amount

The rule: existing debt up to 100% of the expansion project cost can be refinanced if SBA's substantial benefit and other conditions are met. Source: 13 CFR § 120.882(e).

## What must still be true

- At least 75% of the debt's proceeds bought fixed assets eligible for 504.
- The debt is secured by fixed assets, and those assets must also secure the 504 loan unless SBA waives this for extraordinary circumstances.
- You have been current for at least 1 year before SBA approves the 504 loan.
- The new payment must be lower than the old one, and the terms or rate must be better.

## Area of Operations

Whether a project is inside a Certified Development Company (CDC)'s Area of Operations depends on the newly acquired assets, not the assets securing the old debt. If refinanced assets sit outside that area, the CDC must show it can close and service the loan and monitor the collateral (Para. C.11).

## Documents

The application needs the debt and lien instruments and a transcript of account or similar payment history (Para. C.11).

## Sources

- [SOP 50 10 8.1, Sec. C, Ch. 1, Para. C.11 (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)
- [13 CFR § 120.882(e)-(f)](https://www.ecfr.gov/current/title-13/section-120.882)