How does refinancing work for Michigan roofing contractors?

Review the cited answer and prepare the questions you want to ask. Use the checklist to organize the details you need to confirm before applying.

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Short answer

The SBA 504 refinancing rule requires a minimum 10% savings on the new installment amount for the refinancing to qualify as a “substantial benefit.”

The SBA 504 refinancing rule requires a minimum 10% savings on the new installment amount for the refinancing to qualify as a “substantial benefit.” (michigancdc.org).

Eligibility and Savings Threshold

  • Write down the savings amount and keep a copy for the lender’s “substantial benefit” verification.

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Choosing the Right Loan Type

The median initial interest rate on SBA 7(a) loans approved for roofing contractors in Michigan over the last 12 months was 9.88% (loanround.com).

Term loans used by roofing businesses carry average interest rates between 7.2% and 11.5% with terms of 3 to 7 years (roofpredict.com).

Revolving credit lines for roofing contractors typically have APRs of 12% to 18% and terms of 1 to 3 years (roofpredict.com).

  • Compare SBA 7(a) variable‑rate options versus term loans and revolving lines to see which matches your cash‑flow needs.

  • Ask each lender to provide a written rate quote and term length for the product you prefer.

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Rate and Fixed‑Rate Requirements

A refinance loan under 7 CFR Part 3555 must have a fixed interest rate that does not exceed the rate of the loan being refinanced (usda.gov).

As of October 14, 2026, the average 15‑year fixed mortgage refinance APR in Michigan was 6.85% (bankrate.com).

Using Existing Equity

Sizzle Capital Group offers refinance options for Michigan roofing contractors to leverage existing equity in commercial real‑estate holdings (sizzlecapitalgroup.com).

  • Contact a provider such as Sizzle Capital Group to ask how much equity you can tap from your roof‑related real‑estate holdings.

  • Request a preliminary loan estimate that includes fees, repayment schedule and any required collateral.

Documentation Checklist

Most SBA 7(a) loans to Michigan roofing contractors are variable-rate loans that reset with the prime rate (loanround.com).

  • Ask the lender to identify the documents it wants to review and write down where to submit them.

  • Gather recent tax returns, profit‑and‑loss statements, existing loan agreements and proof of property ownership.

Disclosures

This content is for educational purposes only and is not financial advice. getroofingfinancing.com may receive compensation from partner lenders, which may influence which products are featured.

Sources

Related questions

What interest rates can I expect on a refinance?

The median initial interest rate on SBA 7(a) loans approved for roofing contractors in Michigan over the last 12 months was 9.88%.

Can I refinance a variable‑rate SBA loan to a fixed rate?

A refinance loan under 7 CFR Part 3555 must have a fixed interest rate that does not exceed the rate of the loan being refinanced.

How do revolving credit lines differ from term loans for roofing work?

Revolving credit lines for roofing contractors typically have APRs of 12% to 18% and terms of 1 to 3 years.

Convert a factor rate to an APR

Estimated APR equivalent
109.3%
Total payback
$65,000
Cost of capital
$15,000
Daily payment (126 payments)
$515.87

APR equivalent solved from the payment schedule (the IRR method Truth-in-Lending APRs use). Daily debits assume business days. Estimate only — the real cost depends on the offer.

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