The Small Business Administration (SBA) 504 Loan Program completed its largest monthly funding of loans in the program’s 34-year history, including 1,462 loans for $1,284,274,000 – more than double the previous record set in September 2012. Historic levels of 504 loan closings and fundings were driven by record low interest rates and debt relief provided by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Additionally, small businesses continue to benefit from SBA’s April 2018 introduction of a 25-year maturity option for 504 loans which complemented the program’s 10- and 20-year terms. The 25-year term provides an affordable, fixed-rate option with an attractive term that increases the 504 loan program’s usefulness by lowering monthly payments and improving borrower cash flow – particularly critical, as small businesses continue economic recovery from the COVID crisis.
Recognizing this consequential achievement, NADCO President and CEO Rhonda Pointon highlighted the team effort of NADCO member CDCs, their lending partners, and SBA colleagues, commenting “America’s small business are vital engines of job opportunities and economic development in local communities across the country. The historic funding in September continues to validate the need and importance for community-based, mission lenders like our CDCs and for important tools like our 504 loan program in providing much needed access to capital to small businesses. Our member CDCs continue to work daily to assist small businesses and entrepreneurs as they continue on the road to economic recovery and growth.”
For additional information on the SBA 504 Loan Program, give us a call at 1-800-SBA-REAL.