The August 2022 SBA 504 debenture pricing was competed on August 11, 2022.

25 Year Term 4.98%

20 Year Term 4.89%

The SBA offers a 504 Loan with a 25-year maturity for the acquisition of owner-occupied commercial real estate and related costs. This is in addition to the 10 and 20 year loans currently available in the 504 Loan Program. Loans are typically eligible for up to 90% financing of project costs. Rates include monthly servicing fees to CDC, SBA, and central servicing agent; based on SBA FY22 fees. SBA 504 refi rates are approximately 3 basis points higher than debenture pricing noted above.

ALP Express Loan 
The SBA recently released guidance on the new SBA 504 ALP Express Loan Program.

As an ALP designated CDC, SomerCor can help expedite the approval, authorization, and closing of certain loans less than $500,000 through the ALP Express Loan Program. 

For example, it can cover projects up to $1,210,000 for existing businesses. As the popularity of the 504 program continues to grow, the ALP Express Loan is a great option for small business to access capital faster.

SBA 504 Refinance 
The 504 refinance option allows small businesses to restructure existing debt on their commercial real estate. Borrowers can leverage built-up equity and take money out for eligible operating expenses. The cash out piece ranges up to 20% of the appraised value of the commercial property. SomerCor can now refinance certain government-guaranteed debts such as existing SBA 504 and 7(a) loans. 

SBA 504 Appraisal Rule Update
The SBA, per Procedural Notice 5000-835230, revised the appraisal requirement from 95% to 90% of the estimated value of the commercial real estate. This change is effective for loans approved on or after July 29, 2022. This revised rule allows for up to a 10% shortfall in appraised value.

Under previous SBA procedures, if the appraisal was less than 95% of the estimated value of the commercial real estate, the debenture had to be reduced or the CDC had to secure additional collateral or additional investment from the Borrower and/or guarantors. 

Since 1992, SomerCor has secured more than $1.58 Billion in SBA 504 commercial real estate financing for over 3,671 small businesses. Our team is excited to show you how an SBA 504 loan can help your clients. 

Happy Birthday, SomerCor!

Thank you for working with the SomerCor team to help grow small businesses. Your collaboration and partnership with us has positively impacted countless communities throughout Illinois.

We look forward to celebrating with you over the next 12 months through a series of SomerCor related events and initiatives commemorating our anniversary. 

Here’s to another 30 years of impact and service!