Main Street Loan Refinance | ChatBiz SBA Options

Refinance your Main Street loan before the balloon

That 70% balloon payment isn't going away. Refinance into an SBA 7(a) loan and replace the lump sum with monthly payments you can actually manage.

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1000+ Businesses

$500M deployed

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The Main Street loan crisis

Main Street loans were designed as pandemic relief, not long-term financing. The structure creates a dangerous payment cliff that most businesses cannot handle.

Year 1

Deferred

No
Payment

Year 2

Deferred

No
Payment

Year 3

15%

Partial payments

Year 4

15%

Partial payments

Year 5

70%

Balloon due

70%

of principal due in year 5 as a balloon payment

Variable rates

that could double as the Fed adjusts policy

2026-2027

when most Main Street balloons come
due

Why refinance into SBA 7(a)

SBA 7(a) loans offer the stability and predictability that Main Street loans lack.

Feature

Main Street Loan

SBA 7(a) Refinance

Payment Structure

Deferred, then balloon

Predictable monthly payments

Interest Rate

Variable (floating)

Fixed rate

Term Length

5 years

10-25 years

Balloon Payment

70% of principal

None

Rate Risk

High (variable)

None (fixed)

Certainty

Low

High

Real-world example

Main Street Loan Scenario

Original loan

$3.5M

After partial payments

$3.0M remaining

Year 5 balloon

$2.1M due

SBA 7(a) Refinance

New loan

$3.0M

Term

25 years

Monthly payment

~$25,000

Terms and requirements

Loan terms

Amount

Up to $5M

Interest rate

11–13% APR

Term length

7-25 years

Prepayment penalty

After 3 years

Closing timeline

45-60 days

Qualification checklist

Business operating for 2+ years

Positive cash flow and EBITDA

Main Street loan in good standing

Owner credit score 680+

Debt service coverage ratio ≥1.25x

No recent bankruptcies or defaults

What lenders evaluate

Cash flow and profitability trends

Industry stability and outlook

Collateral and equity position

Management experience

Business plan post-refinance

Personal and business financials

How the refinance works

A clear, methodical process designed to get you from Main Street uncertainty to SBA stability in 45-60 days.

1 weeks

Submit application

Complete the online application and provide initial documentation about your Main Street loan and business financials.

2 weeks

Review and evaluation

Our SBA specialists review your file, work with you on documentation, and connect you with appropriate lenders.

3 weeks

Lender underwriting

SBA-approved lender conducts underwriting, requests any additional documentation, and provides loan decision.

1–2 weeks

SBA approval

Lender submits to SBA for guarantee approval. SBA reviews and issues authorization.

1 weeks

Close and payoff

Sign final documents, close the new SBA 7(a) loan, and payoff the Main Street loan in full.

Led by the experts who wrote the book on this

$300M+

Licensed Broker

1,000+

Businesses funded

15+ years

SBA lending experience

98%

approval rate for qualified applicants

Why this matters

Deep relationships with SBA-preferred lenders nationwide and experience with Main Street-to-SBA refinance means you get expert package preparation to avoid delays and rejections. With former SBA bankers on staff we know underwriting inside-out and charge no upfront fees — we succeed when you succeed.

Javier Jorge

Founder & CEO

NAGGL Board Member

Former Senior VP, SBA Lending

15+ years SBA expertise

Alternative options to consider

We believe in honest guidance. Here are other paths to explore, along with their trade-offs.

Private term loans

If you don't qualify for SBA but your business is fundamentally healthy, we can explore a private loan through our private fund and lending partners. These loans have higher rates (18-35% APR) but still convert the balloon into manageable monthly payments.

Asset-based lending

If you have equipment, real estate, or inventory, asset-based loans can provide the funds to pay off the balloon. Collateral-secured and more accessible than unsecured debt.

Partial refinancing with capital injection

Sometimes the solution is refinancing most of the balloon and bringing in equity or subordinated debt for the remainder. We can structure blended solutions.

Debt restructuring

In limited cases, your originating bank may be willing to restructure within the 5-year window with Fed consent. This is rare but worth exploring if timing is tight.

What we won't do

Push you into a predatory loan that just delays the inevitable. If refinancing truly doesn't make sense, we'll tell you and help you evaluate all options including potential asset sales or operational restructuring.

Frequently Asked Questions

Is it too late to refinance if my balloon is due soon?

Depends on "soon." If your balloon is 90+ days out, we have time. If it's 30 days out, options narrow significantly. The earlier you start, the better terms you'll get.

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What if I already missed a payment?

Missed payments complicate refinancing but don't make it impossible. SBA lenders will want an explanation and to see that the business is otherwise healthy. Address this immediately—don't wait.

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Can I refinance if my business revenue is down since 2020?

Maybe. SBA lenders care more about current cash flow and future viability than whether you're back to 2019 levels. If you can service the new debt, you may qualify.

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What if my Main Street loan has restrictive covenants?

The SBA refinance pays off the Main Street loan entirely, releasing you from those covenants. You'll have new SBA covenants, but they're typically more reasonable for ongoing operations.

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How much does refinancing cost?

SBA loans have origination fees (typically 2-3% of loan amount) and closing costs. These can often be rolled into the loan amount. We'll show you total cost upfront—no surprises.

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Can I refinance and get additional working capital?

Sometimes. If your business needs are legitimate and you qualify, SBA 7(a) loans can include working capital beyond just the Main Street payoff. We evaluate this case by case.

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Led by Main Street refinancing experts

$300M+

deployed

1,000+

Businesses Funded

NAGGL

Board Member

Senior VP

SBA Banker

Licensed Broker

Bank-Level Security

SBA Approved Partner

GDPR Compliant

What business owners are saying

Real feedback from real founders

They turned complex financial challenges into smooth solutions — and made the process enjoyable.

Christopher McKenney

SBA Loan

The team at ChatBiz Finance are knowledgeable and seasoned professionals, further strengthened by an entrepreneurial spirit. I highly recommend them.

Ray Juncoso

Working Capital

ChatBiz made it easy from day one. They advised me on my bookkeeping and helped me get approved when I really needed clarity and support. They’re true experts who got me the best structure for my financial goals.

Akhil Bhandare

Working Capital

Don't let the balloon payment
derail your business

Get clarity on your refinancing options in minutes. No credit pull, no commitment, no
pressure. Our SBA specialists will provide honest
guidance tailored to your situation.

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Talk to SBA lending expert

What business owners are saying

1000+ Businesses Served

$300M Deployed

20+ Lending Partners

500+ SMB Resources