SBA 504 Loans are a great way to support and grow your business by enabling business owners to  finance commercial real estate or large equipment.

The 25-year term loan (which the SBA unveiled four months ago) complements the 20-year and 10-year terms that are commonly offered with 504 loans. William Manger, Associate Administrator for the SBA’s Office of Capital Access, said, “By extending the payment cycle by 60 months, SBA expects that the new instrument will decrease the monthly payments for the small business borrower and will provide flexibility for small businesses to better manage critical operating capital.”

The 25-year SBA 504 Loan option is attractive to business owners, especially considering that operational costs for businesses continue to rise and the Federal Reserve indicating that interest rates will continue to rise in the foreseeable future. Both instances make running a business more expensive.

“Our goal at BFC is to help businesses and communities grow,” said BFC Executive Director Jacky Dilfer. “The 25-year option is especially helpful as it decreases the monthly loan payments, which improves cash flow and makes it easier for businesses to operate. That said, some businesses may be better suited with 10 or 20-year SBA 504 Loans. At BFC, we remain dedicated to helping every client find the ideal loan option that best suits their needs and visions for the future.”

To learn more about SBA 504 Loans, email Jacky directly at