Where a 504 Project involves expansion, the CDC refinances existing debt only up to 100% of the expansion cost and documents in its credit memorandum that: at least 75% of the debt (or original loan) financed 504-eligible fixed assets and all of it benefited the same small business; the debt is secured by fixed assets that will also secure the 504 loan (unless SLPC waives), with the old lender releasing, subordinating or assigning its lien; an existing 7(a) loan may be refinanced in whole or part and a 504 loan only in whole, after 10 business days' written notice to that lender, and a Third Party Loan is never refinanced with an SBA-guaranteed loan; the refinancing gives a substantial benefit (lower installments after penalties and fees, with the stated rules for seasonal and balloon loans) and better terms or rate; the Borrower has been current (not more than 30 days late) for 1 year per the transcript, with any later delinquency reported as an adverse change; copies of the debt and lien instruments are submitted; the CDC can close, service and monitor collateral outside its area; and the TPL's commitment letter certifications are obtained. Debt owed to Associates, SBICs, NMVCCs or loss-shifting creditors is excluded, and PCLP authority is not used for same institution debt.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.