Commercial loan refinancing with cash out

[Ashvin Dewan]

Hello all. I am relatively new here, but thought i'd give this a try. I have searched the forums and could not find the answer to my question directly...

Basically I wanted to investigate the feasibility of a commercial loan refinance with cash out. We have a unique situation with our family business where we have had some tough personal circumstances that have impacted our business this year. Good news is things are getting better, but the bad news is, we are behind now on our tax payments for a property that has appreciated tremendously over the last ten years. The loan note we have is a 10 year loan with 20 year amoritization for 1.25 million. The property if it was appraised today, due to some very fortuitous neighboring developments, is now conservatively around 8 million. Would there be a way to refinance the property and get some cash out to pay some of our debts like the accumulated property taxes or credit card debts? Or am I being naive? I figured standard lenders would probably want the taxes paid before a refinance. Is my option only private lenders? We would ideally like to pull out about 300k to help clean the slate for us. The other problem I imagine with a commercial loan is demonstrating the viability of our income stream for our business. We are a seasonal business with lots of fluctuation. I imagine they would want us to demonstrate some source of continual income and probably produce tax statements. I imagine that would be a hurdle for us to get the financing. 

Just to be clear, our goal really is to stay in the property for as long as possible and hopefully sell it in maybe 2-3 years. Our hope was that if there was a cash our refi option that could buy us time, and we would want to pursue that. Maybe the better alternative is just getting a private lender loan for the cash we need....

Hopefully some of you bankers can chime in and offer some advice. I am sure you are lacking some of the information needed, so please let me know what else I can provide you with. 

Thanks in advance.