Are you a small business owner or franchisee struggling with the crushing payments of a merchant cash advance (MCA)? You might be eyeing an SBA loan to refinance that high-cost debt and stabilize your finances. Unfortunately, the SBA’s rules, updated in SOP 50 10 8 (effective June 1, 2025), explicitly prohibit refinancing MCAs with SBA 7(a) or 504 loans. This restriction protects businesses from predatory debt cycles but ironically now prohibits SBA loans to help refinance out of predatory type lending.