Can I refinance my Maryland business debt in 2026?

Yes — Maryland businesses with ≥3 years, a 620+ credit score, and a 1.25× debt‑service coverage can refinance high‑interest debt into an SBA 7(a) loan at 8‑10% APR. Check rates.

The specifics

Maryland entrepreneurs can target refinancing their costly merchant cash advances or short‑term loans into a long‑term SBA 7(a) loan. The SBA sets the following baseline criteria:

1. Business age – At least three years in operation (the SBA prefers a track record that shows stability).
2. Credit score – A FICO of 620 or above is considered fair credit and opens access to the standard 8‑10% APR range【sba.gov】.
3. Debt‑service coverage ratio (DSCR) – 1.25× or higher is required so that monthly debt service stays within 8‑12% of gross monthly revenue【sba.gov】.
4. Documentation – Submit 12 months of bank statements, the most recent tax returns, and a concise business plan that justifies the loan amount.
5. Loan amount & term – SBA 7(a) loans can go up to 7 million dollars with terms of 5–7 years, though the actual amount depends on your collateral and cash flow.

Because refinancing replaces a shorter‑term high‑rate loan, the average MDR in July 2026 is about 9.5% APR for SBA 7(a) loans【nerdwallet.com】. By contrast, typical merchant cash advance rates sit at 18‑25%【nerdwallet.com】. The difference translates into monthly savings that often deepen the cash‑flow cushion.

For a quick estimate of how much you could save, try our built‑in affordability calculator. It uses your revenue, current debt payments, and credit score to project the new payment schedule and total interest.

Qualification & edge cases

• Credit below 620 – Some lenders may still approve but with a 3‑5% higher APR; collateral can offset that premium【forafinancial.com】.
• DSCR below 1.25× – Posting additional collateral (e.g., equipment or real estate) can reduce the APR by 1‑3% and improve approval odds【sba.gov】.
• Business age under 3 years – Lenders may require stronger collateral or promise a shorter term, which can increase the interest rate. The approval window may lengthen to 60 days.

If any of these conditions apply, consider supplementing with an affordability calculator to see the impact of collateral or a higher credit score before you apply.

Background & how it works

The SBA 7(a) program is a government‑backed loan that caps interest at 8‑10% APR and offers terms of up to 7 years. Lenders use your DSCR and credit history to gauge risk; a higher DSCR indicates you can comfortably meet monthly payments. The refinance process requires you to submit a complete loan package, after which the lender conducts underwriting and a 30‑45‑day approval cycle【lendingtree.com】. If approved, the new loan replaces the older debt, often with lower monthly payments that better align with your revenue streams.

Maryland owners often turn to refinancing to free cash flow for inventory, equipment upgrades, or expansion. For instance, the dental industry frequently consolidates older equipment notes into a new SBA loan; see the case study on Maryland dental refinancing for a real‑world example.

Bottom line

Maryland businesses that meet the 3‑year, 620+ credit, and 1.25× DSCR criteria can refinance high‑interest debt into an SBA 7(a) loan at 8‑10% APR, cutting monthly payments by 8‑12% of revenue. See the rate you qualify for in minutes without a hard inquiry.

Disclosures

This content is for educational purposes only and is not financial advice. businessloanrequirements.com may receive compensation from partner lenders, which may influence which products are featured. Rates, terms, and availability vary by lender and applicant qualifications.

Sources

• SBA Lender Reports
• NerdWallet Business Loan Rates
• LendingTree SBA 7(a) Study
• Fora Financial Loan Stats
• 2026 Loan Approval Study
• Affordability Calculator