Maybe good news for cash-strapped entrepreneurs with an existing business—the Small Business Administration has announced that it’s revised its 504 loan program to give businesses the chance to refinance if they plan to expand or buy equipment, reports the Wall Street Journal. While there’s a lot of technical nitty-gritty and fine print, here’s what you need to know: while it used to be that entrepreneurs could only tap into the 504 loan program if they were seeking new loans to purchase real estate or equipment, now the pot has been sweetened, and entrepreneurs can refinance existing SBA loans if that amount is 50% less than the new dollar amount they’re requesting. Here’s an example of how it might work:

“For instance, a business owner who already has a $1 million 504 loan could now refinance that to buy $500,000 worth of equipment, said Hayley Matz, a SBA spokeswoman.

There’s a catch, though. For every $65K the SBA guarantees, the entrepreneur must create or retain a job.

What do you think? Will this help struggling entrepreneurs?

Tags: bank lending, sba