SBA Just Banned MCA Refinancing—Here’s What Business Owners Need to Know

June 1, 2025 marked a seismic shift in small business lending: the U.S. Small Business Administration (SBA) has officially prohibited using SBA loan proceeds to refinance Merchant Cash Advances (MCAs) and factoring debt. See official SBA guidance here . This MCA refinancing ban affects all major SBA programs, including:

Standard 7(a) Loans
7(a) Small and Express Loans
SBA 504 Loans
Export Express Loans
International Trade Loans

If you’re struggling with high-interest MCA debt and hoped to use an SBA loan for MCA debt relief—that option is gone.

But don’t panic. Advance Consolidation Experts (ACE) is here to explain what this policy change means and why private lender MCA consolidation may now be your smartest financial move.

What Changed in MCA Refinancing Rules and Why

Historically, many small businesses used SBA loans to consolidate MCA loans and escape crushing daily or weekly payments. But this created a dangerous cycle: borrowers would refinance, regain breathing room, then accumulate more merchant cash advance debt.

The SBA’s MCA refinancing prohibition aims to:

Reduce default risk across SBA lending programs
Protect program integrity and maintain sustainable lending standards
Prevent MCA debt cycling among small businesses

👉 The bottom line? You can no longer use SBA funds for MCA loan consolidation—regardless of debt size or lender.

Best MCA Consolidation Alternatives After the SBA Ban

This is where private lender MCA consolidation becomes crucial. ACE specializes in business debt consolidation MCA solutions as direct lenders for small business loans.

Unlike banks or SBA programs, ACE offers MCA debt consolidation alternatives with:

Our MCA Debt Consolidation Process:

Consolidate MCA loans into one structured term loan
Replace unpredictable daily withdrawals with manageable monthly payments
Reduce MCA payments by up to 90% through strategic restructuring
Legal team handles MCA lawsuit defense and debt negotiations
Stop daily MCA payments immediately upon approval

We don’t stack debt—we restructure it. Once we’ve eliminated your MCA debt burden, you’ll qualify for traditional funding sources like SBA loans again.

Why Choose Private Lender MCA Consolidation Over Traditional Options?

If you’re researching:

Best MCA consolidation companies
How to consolidate merchant cash advances
MCA debt relief programs
Alternative to SBA MCA refinancing

ACE’s MCA consolidation approach includes:

Comprehensive Debt Analysis

Complete business finance advance situation review
MCA settlement alternatives for debt restructuring
MCA payoff calculator & MCA repayment help strategy. Use our free MCA consolidation calculator to see how much you can save.

Expert Financial Guidance

Dedicated MCA debt advisors
Business debt restructuring MCA expertise
Long-term financial health planning

Legal Protection Services

MCA lawsuit assistance and defense
Stop MCA lawsuits before they escalate
MCA liens solutions and judgment protection

Required Business Loan Documents for MCA Consolidation

Ready to apply for MCA debt consolidation? Here’s your checklist:

Last 3–6 months of bank statements
All Merchant Cash Advance contracts and payment records
Business tax returns (when available)
Business ownership proof and EIN documentation
Complete liability and asset inventory
MCA settlement alternatives documentation (if applicable)

Large-Scale MCA Debt Consolidation for Qualified Businesses

ACE specializes in high-dollar consolidations:

Consolidate $500K MCA loans and larger debt portfolios
Consolidate $1M MCA debt for established businesses
Large MCA debt consolidation with competitive private rates
MCA debt consolidation for qualified businesses with proven track records

Stop MCA Payments Today—Start Your Financial Recovery

The SBA closed the door on MCA refinancing, but ACE opens new possibilities. We’ve helped hundreds of businesses reduce MCA payments, consolidate debt, clean up balance sheets, and refocus on growth instead of survival.

👉 Call ACE today: 702.735.9800
👉 Or visit consolidatewithace.com for immediate expert consultation.

Don’t let the SBA ban trap you in endless debt cycles. We’ve helped hundreds of businesses reduce MCA payments and stop lawsuits. For practical advice, check out these 3 critical tips to deal with high-cost MCAs

Other Suggested Blogs:

3 Proven Reasons Why MCA Debt Consolidation Is Beneficial for Your Business

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Why MCA Consolidation Loans Is A Better Way Over Debt Settlement Companies

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We are a direct lender that creates lending products to meet the needs of our borrowers. Our MCA Consolidation Loan helps entrepreneurs regain control of their cash flow, streamline their finances, and create a clear path to long-term financial stability. Our founder and CEO brings over three decades of unparalleled expertise across multiple industries. Starting his career as a practicing attorney, he transitioned into leadership roles, including Vice President and a principal in a mortgage bank where he facilitated over 2 billion in closed transactions. He has since built a portfolio of successful ventures, leading three multi-million-dollar private companies and serving as a board member for two firms generating over 100 million in funded business loans. His diverse experience, combined with his role as a private business lender overseeing more than 100 million in funded loans, uniquely positions him to understand and address the financial challenges small businesses face. Learn more about how we help businesses thrive on our homepage.