Skip to content


Debt Refinance Results in Double-Digit Savings

Legacy Logistics event setup
Photos courtesy Legacy Logistics -

Events are back – and resuming fast and furiously.

Shipping delays are also at high levels.

So what if your core business relies on both?

Such is the case for Ernie Magalotti, President and Owner of Legacy Logistics, which assists trade show exhibitors with transportation, show services, warehousing and more.

Ernie Magalotti
Ernie Magalotti is President and Owner of Legacy Logistics

With all of the challenges, Ernie is thrilled to be realizing double-digit savings thanks to an SBA 504 debt refinance.

You may recall Seedcopa’s posting about the benefits of SBA 504 debt refinancing for existing expensive commercial debt. Now 100% of expansion costs can be refinanced, and more businesses are eligible than ever before.

For Ernie and Legacy Logistics, the double-digit savings unfolded like this:

  • The company located in Reading, Berks County already had a facility mortgage for 19,660 square feet of space.
  • Legacy Logistics wanted to refinance that mortgage at a much lower interest rate, plus expand to a second, 18,000 square foot facility across the street from its current location.
  • Pre-pandemic, the company experienced double-digit growth each year for the past four years. It needed more space to continue operating and allow for future growth.
  • Legacy Logistics was able to tap into the recognized equity in its existing property to cover the down payment for the new property.
  • In addition, the refinance with expansion of existing debt provided the double-digit savings.

“We took possession of our new building during the spring of 2020, and our SBA 504 loan funded in May 2020 – right at the onset of COVID,” says Ernie. “Having the extra savings at that time was a life saver. Then we benefited from almost one year of assistance with covered payments from the SBA as well as deferments from our bank, Tompkins VIST. This allowed us to not only survive, but also thrive as we prepared for the events industry to ramp up again.”

Ernie formed Legacy Logistics in 2000 to provide reliable service to exhibitors requiring trade show transportation. Twenty years later, the company has expanded service offerings to include show services, warehousing and storage, and white glove services. Customers appreciate the depth of knowledge Legacy provides to minimize the impacts of variable expenses when it comes to event logistics. Factors such as drayage, material handling, overtime charges and forced freight are unique to event shipping and can quickly impact costs if not handled correctly. Factor in the shipping delays and shortage of truck drivers that exist in the current environment, and Legacy Logistics is in high demand.


Reminder to Borrowers: Long-awaited changes to the SBA 504 Deb Refinance Program just went into effect in August. Here are the basics…

SBA 504 Debt Refinancing With Expansion

If your commercial real estate or heavy duty equipment expansion project was looking to also refinance current fixed asset debt, the maximum amount of debt that may be refinanced within a 504 project is now 100% of expansion costs, increased from 50%.

Note: 85% of the debt to be refinanced must originally have been used for commercial real estate purchase, construction or improvements.

SBA 504 Refinancing Without Expansion

These permanent changes are truly beneficial to those businesses where commercial real estate or heavy duty equipment financing was put in place at higher interest rates. If you are looking for 100% debt refinance that does not include expansion, you may be eligible for SBA 504 debt refinance if your debt is at least 6 months old at the time of SBA application.

This is reduced from the previous requirement that the existing commercial debt be at least 2 years old. And you can refinance existing government guaranteed debt, including existing SBA 504 loans and 7(a) loans, that would not be able to be modified by the current lender.

Don’t forget: 85% of the debt to be refinanced must originally have been used for commercial real estate purchase, construction or improvements

When it comes to assisting small business recovery and growth, these long-awaited updates to regulations significantly expand the ability of SBA 504 debt refinancing programs to help. Seedcopa will continue to keep you updated on any new developments.


Seedcopa logo

For almost forty years, Seedcopa + SeedcoDE has helped businesses get the money they need to start, grow and expand. We are proud that the loan programs we work with promote economic development.

Together with economic development partners throughout Pennsylvania and Delaware, we help to grow local businesses, create and retain jobs and stimulate local communities.

Our team has over 75 years of combined government lending experience and a dedication to excellent customer service. After our initial assessment of your project, our commitment is to get you approved and closed.

Back To Top