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25-Year Term Now Available for SBA 504 Loans

25-Year Term Now Available for SBA 504 Loans

The 504 loan program already offers unparalleled affordability for small businesses by offering 10- or 20 year terms.  In order to make it possible for more small businesses to access financing for owner-occupied commercial real estate, large equipment purchases and/or debt refinance, the SBA has officially added a 25 year term option to the 504 loan program.

Now, business owners nationwide, including those served by The 504 Company in New Jersey, New York, and Pennsylvania, can receive below-market interest rates and up to 90% financing with even longer terms.

Here are some important details about the new 25 year debenture:

  • The 25 year term is available for all loans approved after April 2, 2018. The terms for loans approved before this date may not be extended.
  • The term of the bank first mortgage/lien must be at least 10 years. (The bank does not need to match the 504 loan amortization).
  • There has not been any information released regarding interest rates for the 25-year term. We will provide information on interest rates when it is made available.

The availability of the 25-year term greatly enhances the existing benefits of the 504 loan program, which include up to 90% financing and fixed interest rates (an important factor in today’s rising rate environment).

If you have questions about the new 25 year term, or have a client who may benefit from it, please get in touch with your The 504 Company loan officer, or find the loan officer near you here. We are looking forward to working with you!

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