Financial Advisors Push SBA Loans for Refinance as Rates Hold Steady Through Mid-2025

In 2025, small business lending is shifting in a positive direction. With interest rates stabilizing and SBA loan programs remaining accessible, financial advisors are increasingly encouraging business owners to consider refinancing—particularly through the SBA 7(a) and 504 loan programs.

Many businesses are still burdened by high-interest debt from the post-pandemic period, including merchant cash advances and short-term online loans. SBA refinancing provides a strategic path to lower rates, better terms, and improved cash flow.

Financial Advisors Push SBA Loans for Refinance as Rates Hold Steady Through Mid-2025

📉 Why Now? Interest Rates Are Holding Steady

As of mid-2025, the Federal Reserve has held interest rates steady through Q3, balancing inflation control with economic growth. While SBA 7(a) loans average 10.5%–14%, they are significantly cheaper than most private options like online loans (18–35%).

The SBA 504 loan—ideal for refinancing fixed assets—offers rates as low as 4.75% over 25 years.

🔗 Current SBA Loan Rates

Check out our live dashboard of current SBA loan rates.

🔄 SBA 7(a): A Smart Refinancing Tool

The SBA 7(a) program isn’t just for working capital or business acquisitions—it also supports debt refinancing, including:

Paying off high-interest online or alternative loans
Consolidating multiple debts into one manageable loan
Refinancing merchant cash advances with short durations
Restructuring debt terms up to 10–25 years

📌 Case Example

A restaurant owner carrying two loans at 18% APR refinances into a 10-year 7(a) loan at 10.75%, cutting monthly payments by 50% and freeing up capital for marketing and equipment upgrades.

💡 Key Benefits of SBA Loan Refinancing

✅ Lower Monthly Payments: Spread over a longer term with lower APR
✅ Simplified Finances: One loan means easier management and better forecasting
✅ Healthier Financial Statements: Improved DSCR and cash flow support future lending
✅ Room to Grow: Extra capital for hiring, marketing, or tech upgrades

🛠️ SBA Refinancing Eligibility Criteria

To qualify for refinancing through the SBA:

Debt must be current with a strong payment history
Original loan terms must have been commercially reasonable
Refinance must offer a clear borrower benefit
Debt must not be SBA-guaranteed (unless consolidating SBA loans)

Lenders must also confirm the “credit elsewhere” condition—demonstrating that the borrower can’t obtain equivalent terms without SBA support.

📊 Refinancing Trends (Q1–Q2 2025)

20% of 7(a) loans are now issued for refinancing
Average refinance loan size: $422,000
Loan approval time: Down 15% YoY due to digital platforms

Explore our data summary on SBA Lending Trends in 2025.

📝 Steps to Prepare for SBA Refinancing

List Current Debts: Include amounts, rates, and monthly payments
Update Financials: Prepare tax returns, P&Ls, and a debt schedule
Check Credit: Aim for 680+ personal credit and solid business trade lines
Work with SBA-Preferred Lenders: They understand refinancing guidelines
Tell Your Story: Share how refinancing will improve your business

🧮 SBA vs. Bank vs. Online Refinancing

Criteria	SBA 7(a) Loan	Bank Loan	Online Lender
Interest Rate	10.5%–14%	9%–13%	18%–35%
Term Length	Up to 25 years	Up to 10 years	6–36 months
Down Payment	None	Often 10%+	None
Prepayment Penalty	None (under 15 yrs)	Often Yes	Often Yes
Debt Refinance Eligibility	Yes	Limited	Rare

With SBA underwriting back on track and rates holding steady in 2025, this is an ideal time for small businesses to refinance. Whether you’re managing multiple high-interest loans or simply want to improve cash flow, SBA 7(a) and 504 loans offer a powerful refinancing solution.

As advisors recommend acting before potential economic shifts in late 2025, entrepreneurs should seize this moment to strengthen financial stability and unlock new growth opportunities.

🚀 Take the Next Step with BoomerBiz Loans

Ready to elevate your entrepreneurial journey? BoomerBiz Loans specializes in supporting baby boomer business acquisitions, offering a streamlined 3-step loan application process for fast approvals within 24–48 hours.

With competitive low-interest rates, flexible terms, and loans up to $10 million, we help both first-time and experienced borrowers restructure and grow.

👉 Start Your Loan Application and refinance smarter today.

📚 Bonus Reads: Refinancing and SBA Loan Strategy

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