November 2019
Ask The Experts
SBA 504 Q&A: Extensions to Authorizations

Q: How long is a Small Business Administration (SBA) 504 loan authorization valid?  Are extensions available?  What is required for an extension?

Ask the SBA 504 Loan ExpertsA:  504 loans under the Debt Refinancing Program must be funded within 9 months of SBA approval.  An extension can be requested, and if approved, will be granted up to only 6 additional months.  No further extensions will be allowed.

All other 504 loans must fund within 48 months (4 years) of SBA approval.  An extension can be requested, and if approved, will be granted up to an additional 12 months (1 year).  No further extensions will be allowed.

In either case, in order to request an extension, a change request must be submitted explaining the following:

  Detailed justification supporting the extension request, including a detailed timeline of events noting any delays.

  Any new or additional information regarding any increases, decreases or changes to project costs.

  Sources and Uses of additional funds spent, if applicable, during any delays.

  Impact on both business and cash flow of any delays.

The SBA will review the request and, if necessary, ask for additional information prior to issuing their decision on the change request.

If you have a question for our SBA 504 loan experts, email us at info@FloridaFirst.com or call 850.681.3601 or toll-free at 800.504.LOAN.