SomerCor President & CEO, Manny Flores, joined Comcast Newsmakers to discuss the proven impact of the SBA 504 program during times of economic uncertainty. See the full interview and key takeaways below:


How is the Small Business Administration serving small businesses during the COVID-19 pandemic?

  • During the COVID economic crisis we have seen the expansion of the EIDL program and introduction of the PPP loan – there are other loan programs the SBA 504, SBA 7a, Community Advantage loans, and SBA Micro Loans.
  • SomerCor, a non-profit small business lender certified by the SBA, specializes in the SBA 504 loan, a public private partnership loan program with proven success during economic uncertainty and increased demand during COVID-19.

What is the SBA 504 program and how has it performed during the pandemic?

  • The 504 provides small businesses affordable financing in partnership with third party lenders, usually banks, to help small business owners to buy, expand or refinance commercial real estate and heavy equipment.
  • The 504 program requires less money down (up to 90% financing), offers loan payment predictability, fixed 20 or 25 year terms, and a below-market interest rate;
    • Lower interest rates mean lower and more affordable monthly mortgage payments, freeing up capital to improve cash flow and reinvest in the business.
  • Since the start of the COVID-19 pandemic through the end of FY20 (March 1- September 30), 4162 SBA 504 loans, with a volume of $3,275,074,000, were approved nationwide – 180 of these loans were for projects in Illinois.
  • September 2020 was the largest monthly funding in the program’s 34 year history in – SomerCor and CDC’s nationwide originated 1,462 loans for $1.28 billion.

What types of businesses can take advantage of the SBA 504?

  • The 504 is good fit for a small business ($15million or under) that is growing from an increase in demand , as well as companies conserving and needing to shore up capital.
  • Spans across industry type – from manufacturing, to professional services, logistics/warehousing, health care, retail, and hospitality
  • Since the start of the pandemic SomerCor borrower success stories include a landscape design company in Villa Park, a plumbing and HVAC services firm in Roselle, a plastics recycling plant in Lake in the Hills, a sheet metal manufacturing facility in Grayslake, a dentistry practice in Bloomingdale, and a fast food franchise in Fox River Grove.

Where can small businesses learn more?

Visit and to learn more about the 504 program and other capital resources for small businesses