Is this commercial refi a good deal?

[George B.]

I'm looking to refi my commercial property. My lender is currently offering what sounds like a good deal, but this is my first time, so I wanted to run it past the pros here in the forums because I'm hearing about "commercial DSCR" loans with long terms. Right now I'm being offered an SBA 504 loan at 25years carrying 44% of the value. The small, local bank carrying 40% of the loan at 10years, 20y amortization with a 5year ARM. That leaves me with 16% in equity, pays off investors AND allows me to personally pull cash out. The SBA portion of the loan has early payoff penalties that decrease year by year. I don't have plans to sell, but I'm also structuring the business so I could sell if needed. The interest rates are also better than I expected.

This seems like an excellent scenario and exactly what I was hoping/praying/planning for. Getting cash out is a huge deal for me. QUESTION: Should I be checking with other lenders? I've built a relationship with this bank, give them all my business and was introduced to them for the purpose of refinancing this property. My DSCR is 3.85.