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Beginning Soon – SBA 504 to Offer a 25 Year Fixed Rate, Fully Amortized Year Term Option

Beginning Soon – SBA 504 to Offer a 25 Year Fixed Rate, Fully Amortized Year Term Option

The 504 loan program already offers unparalleled affordability for small businesses by offering 10- or 20 year terms, fixed rates and low down payments.  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 announced that it will soon add a 25 year fixed rate term option to the 504 loan program.

We’re expecting the SBA to make the 25 year debenture and any eligibility details formally available in April 2018. In the meantime, we know that this new option will:

  • Increase our ability to partner on deals where cash flow is constrained
  • Further reduce monthly payments and improve cash flow for many small businesses
  • Enhance the fixed rate feature that is already core to the 504 program, an important factor in today’s changing rate environment.

If you’re interested in learning more about the 504 loan program and the new 25 year term, join our email list to recieve updates

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