Announcing: 25 Year Option for SBA 504 Program

25Year300

SBA just announced a 25 year option is now available under the SBA 504 loan program! This is in addition to the 10 and 20 year terms that are currently available. The new 25 year 504 loan is offered for 504 projects approved on or after April 2, 2018.

Just a few more details…

  • The term of any 504 project approved prior to April 2, 2018, may not be extended to 25 yrs.
  • The voluntary prepayment penalty schedule will stay at 10 years for the 25 year 504 loans.
  • The term of the participating lender accompanying a 25 year 504 loan must be at least 10 years.
  • The fee structure is the same as for 20 year loans and debentures.
  • The interest rate is expected to be slightly higher than the 20 year rate, and will be set based on market demand and pricing at the time of funding.