Your business should not be crippled by debt.
If your cash flow is feeling the pressure, NEWITY is here to help you find some room to breathe.
This guide walks through exactly what qualifies for refinancing with an SBA loan through NEWITY, what doesn’t qualify, and how the refinance process works from evaluation to closing.
If your cash flow is feeling the pressure, NEWITY is here to help you find some room to breathe.
This guide walks through exactly what qualifies for refinancing with an SBA loan through NEWITY, what doesn’t qualify, and how the refinance process works from evaluation to closing.
What Is Debt Refinancing
Debt refinancing replaces one or more existing debts with a new loan — usually to get more favorable terms.
Business owners use it to lower their interest rate, consolidate multiple monthly payments into one, restructure debt that’s grown unmanageable, or free up cash flow for other needs.
The SBA 7(a) loan program is a popular refinancing tool because it offers longer repayment terms and lower monthly payments than most of the short-term or high-cost financing it’s replacing.
Business owners use it to lower their interest rate, consolidate multiple monthly payments into one, restructure debt that’s grown unmanageable, or free up cash flow for other needs.
The SBA 7(a) loan program is a popular refinancing tool because it offers longer repayment terms and lower monthly payments than most of the short-term or high-cost financing it’s replacing.
What Debt Can You Refinance with an SBA 7(a) Loan?
Here’s a breakdown of what can and cannot be refinanced with an SBA 7(a) loan through NEWITY.
Generally Eligible
- Lines of credit
- Non-SBA term loans
Not Eligible
- Equipment loans
- Existing SBA loans
- Credit cards
- Mortgages (commercial real estate)
- Merchant cash advances (MCAs)
- Factoring agreements
Example: What Refinancing Eligible Debt Can Look Like
Business Scenario
A small retail business is carrying two loans:
- Working capital loan: $80,000 at 15% interest, $1,920/month
- Short-term loan: $40,000 at 18% interest, $1,150/month
- Combined monthly payment: $3,070
Approach
Both loans are non-SBA term debt — eligible for SBA 7(a) refinancing. The owner refinances both into a single SBA 7(a) loan.
Outcome
- Two payments consolidated into one
- A lower combined monthly payment
- Freed-up cash flow for reinvestment
- Potential to qualify for additional working capital in the same loan
How to Refinance Your Business Debt with an SBA 7(a) Loan
Step 1: Confirm your debt is eligible
Before anything else, check your existing balances against the eligibility categories above.
Lines of credit and non-SBA term loans are generally refinanceable; equipment loans, existing SBA loans, credit cards, mortgages, MCAs, and factoring agreements are not eligible through this program.
Lines of credit and non-SBA term loans are generally refinanceable; equipment loans, existing SBA loans, credit cards, mortgages, MCAs, and factoring agreements are not eligible through this program.
Step 2: Evaluate whether refinancing solves the right problem
Refinancing makes the most sense when you’re managing multiple debts, high interest rates, or uneven cash flow tied to eligible loan types.
If your issue is a debt category that isn’t eligible, an SBA 7(a) refinance won’t be the fix — a lender can help you identify what would be.
If your issue is a debt category that isn’t eligible, an SBA 7(a) refinance won’t be the fix — a lender can help you identify what would be.
Step 3: Work with an SBA-approved lender
Not all lenders offer SBA loans, and eligibility determinations vary by lender on top of SBA baseline rules. NEWITY, in collaboration with our lending partners, funds SBA 7(a) loans faster than the national average and can walk through which of your balances qualify before you apply.
Step 4: Confirm baseline eligibility requirements
To refinance through NEWITY, your business generally needs to be:
- In operation for at least two years as a for-profit business
- U.S.-based in location and operations
- Owner-supported/owner-funded
- Eligible per SBA program requirements
- Sized appropriately based on average annual revenue and FICO score for the loan amount requested
Step 5: Prepare your documentation
- 2024 & 2025 Business Tax Return (or 2025 extension)
- Most recent Personal Tax Return
- Business Bank Statements for the last 6 months (or connect through Plaid)
- Debt Schedule, if applicable
- 2025 P&L or Annual Financial Summary
- 2026 P&L or Interim Financial Summary
Step 6: Submit your application
Create a NEWITY account and submit your loan application — it takes less than 10 minutes and does not affect your credit score.
Ready to See What's Eligible?
If you’re carrying business debt and want to know whether it qualifies for an SBA 7(a) refinance, the fastest way to find out is to fill out an application.
Through NEWITY, apply in under 10 minutes — no impact to your credit score to get started.
Through NEWITY, apply in under 10 minutes — no impact to your credit score to get started.
