# Can an SBA Express loan refinance existing business debt?

**Short answer:** Yes. Under SOP 50 10 8.1, Appendix 14, Para. B.2, all general refinancing requirements apply, a written credit memorandum is not required, and supporting documentation must be retained. The debt must also be current for at least the last 12 months or the life of the loan, whichever is less.

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Last checked: 2026-11-08

Yes. Under SOP 50 10 8.1, Appendix 14, Para. B.2, all general refinancing requirements apply, a written credit memorandum is not required, and supporting documentation must be retained. The debt must also be current for at least the last 12 months or the life of the loan, whichever is less. Appendix 14, Para. A sets that test.

## Debt types that can qualify

- Demand notes and balloon debt.
- Debt above SBA's maximum interest rate.
- Business credit card debt: eligible if the applicant certifies the proceeds were used exclusively for the business.
- Home equity line debt: eligible if the applicant certifies the amount was used exclusively for the business.
- Over-collateralized debt.
- Revolving lines the lender will not renew, or that you are restructuring for a lower rate or longer term.

## Debt that does not qualify

- Factoring agreements: not eligible for refinancing (Para. A.2).
- Merchant cash advances that are still active (Para. A.3).
- Debt owed to a Small Business Investment Company or a New Markets Venture Capital Company.

## The payment test

The new payment must generally be at least 10% less than the existing installment amounts in aggregate (Appendix 14, Para. A). Demand notes, balloon debt, business credit cards, home equity lines and qualifying revolving lines are excepted.

Refinancing cannot pay a creditor in a position to sustain a loss. It also cannot shift a potential loss to SBA (Appendix 14, Para. A; 13 CFR 120.201).

Lender appetite for refinancing varies. Ask before you assume your debt fits.

## Sources

- [SOP 50 10 8.1, Appendix 14, Para. A (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, Appendix 14, Para. B.2 (p. 358)](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 § 120.201](https://www.ecfr.gov/current/title-13/section-120.201)