What to Know If Your Main Street SBA Loan Is Expiring or Needs to Be Refinanced
The Main Street Lending Program offered crucial support to small and mid-sized businesses navigating the economic challenges of 2020–2021. But as many of those loans approach final maturity—especially in late 2025—borrowers are now facing an important question: what happens next?
If your Main Street or SBA-backed loan is expiring, understanding your options early can make the difference between a smooth transition and a cash flow crunch. At 5th Line, we specialize in helping business owners refinance, restructure, or transition these obligations with clarity and confidence.
Understanding Main Street Loan Maturity
The Main Street Lending Program was designed as temporary relief, with most loans carrying a five-year term and balloon payment at maturity. Unlike PPP loans, Main Street loans cannot be forgiven and typically cannot be extended under federal guidelines. Once your loan reaches maturity, the entire outstanding balance becomes due.
That means that, for most borrowers, repayment or refinancing is the only option.
Today’s rate environment and tighter credit standards can make refinancing more complex, especially for borrowers whose businesses are still stabilizing after the pandemic or recent market shifts.
Refinancing Options for Expiring Main Street Loans
If your loan matures in 2025, start planning now. Several paths may be available:
Traditional Bank Refinance: Ideal for businesses with strong credit, consistent cash flow, and collateral.
Private Credit or Non-Bank Lenders: Offers more flexibility on structure, covenants, and timeline.
Equity Injection or Partner Buyout: May be suitable if bringing in investors or adjusting ownership structure.
Out-of-Court Restructuring: For borrowers facing stress but not insolvency, a structured advisory approach can prevent default and preserve operations.
At 5th Line, we review your full debt profile and match you with lenders and structures that align with your performance metrics, growth plans, and repayment ability.
What You Should Do Now
If your Main Street SBA loan is maturing within the next 12 months, here’s a checklist to help you prepare:
Review your loan terms. Identify the exact maturity date and outstanding balance.
Contact your lender early. Opening a dialogue 6–12 months in advance gives you more leverage and time to plan.
Assess your financial position. Gather updated financial statements, tax returns, and cash flow projections.
Explore your refinancing options. Engage with advisors who understand both SBA and private market dynamics.
Avoid last-minute negotiations. Default or late payments can impact your credit and future eligibility for financing.
If you’re unsure where to start, 5th Line can perform a no-obligation Main Street Loan Review—a simple conversation to clarify your best path forward.
What Lenders Will Ask For
A strong refinance package can make or break your approval chances. Expect to prepare:
Business and personal tax returns (past 2 years)
Interim financials (balance sheet, income statement, AR/AP aging, debt schedule)
Financial projections and business plan outlining growth or recovery
Resumes and identification for guarantors and key owners
Having this information organized and accurate will expedite underwriting and improve your options.
Why Work with a Specialist Like 5th Line
Refinancing a Main Street loan requires more than just paperwork—it’s about strategy. Our team works with small business owners and founders nationwide to:
Evaluate your debt structure and repayment risk
Model multiple refinancing scenarios
Identify suitable capital sources—from banks to private credit funds
Negotiate terms that support your business, not strain it
We take a consultative, judgment-free approach—helping you protect your financial health while keeping focus on your long-term goals.
Schedule a Main Street Loan Review
If your Main Street SBA loan is expiring or due for refinance, don’t wait until the final notice.
Schedule a free consultation today to discuss your options with 5th Line’s advisory team. We’ll walk through your current loan, assess your refinance eligibility, and map out actionable next steps—so you can move forward with confidence.
Frequently Asked Questions
What happens when a Main Street loan matures?
At maturity, the full balance becomes due. Borrowers who cannot repay must refinance, restructure, or risk default.
Can a Main Street loan be extended or modified?
Generally, no. Federal Reserve guidelines limit extensions or reductions in principal outside of bankruptcy.
Is refinancing a Main Street loan through the SBA possible?
Yes—some borrowers may qualify for SBA 7(a) or 504 refinance programs, depending on collateral and use of proceeds.
What if I can’t refinance in time?
Engage your lender and an advisor immediately. You may be able to negotiate temporary relief or pursue alternative financing before default occurs.