WASHINGTON – The U.S. Small Business Administration announced the updated interest rates for the 504 Loan Program offered by Certified Development Companies (CDC). Small businesses can now apply for the lowest interest rates since July 2018 as the program is now allowing 20 and 25-year interest rates at 2.214% and 2.269%, respectively.
“These are very encouraging terms and very supportive of our nation’s goal to bounce-back from COVID-19,” said William Manger, SBA Chief of Staff and Associate Administrator for the Office of Capital Access. “CDCs” are the driving force behind the 504 Loan Program. The longer terms and low interest rates support and encourage entrepreneurs to step outside of the box and look at real investments. We are pleased that the 504 Loan Program continues to show double-digit year-over-year growth especially in these extraordinary times.”
Small businesses looking for information on how to expand their business real estate or improve their working capital should visit: https://www.sba.gov/brand/assets/sba/sba-lenders/504-Loan-Fact-Sheet-Borrower-Version.pdf
The 504 Loan Program is an SBA business loan program authorized under Title V of the Small Business Investment Act of 1958, 15 U.S.C. 695 et seq. The core mission of the 504 Loan Program is to provide long-term financing to small businesses for the purchase or improvement of land, buildings, and major equipment, to facilitate the creation or retention of jobs and to support local economic development. Under the 504 Loan Program, loans are made in conjunction with private sector lenders to small businesses by CDCs, which are certified and regulated by the SBA to promote economic development within their community.