The Small Business Administration has announced permanent changes to a loan program to help companies that want to refinance existing debt and expand.

The changes will affect 504 loans, which can be used to purchase business real estate or fixed assets, such as heavy equipment or machinery, and expand current development projects. Eligible small businesses will now be able to use half of a 504 loan to refinance previously purchased assets, provided the machinery or project was used towards the expansion of the business. "Expansion" includes any project that involves the acquisition, construction or improvement of land, building or equipment for use by the small business, according to the SBA.

To qualify, a business must meet the following conditions:

• The refinanced debt cannot exceed half of expansion costs.
• The refinancing interest rate and terms must be better than the existing debt.
• The existing debt must be collateralized by fixed assets.
• The borrower must be current on existing debt payments for one year.
• For every $50,000 in SBA guarantee, the business must create or retain one job.

For more information on the 504 loan program and eligibility requirements, go to http://www.recovery.gov or www.sba.gov/recovery.