The August 2021 SBA 504 debenture pricing was competed on August 5, 2021.

25 Year Term 2.86%

20 Year Term 2.74%

10 Year Term 2.59%

The SBA is offering 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 FY21 fees. SBA 504 refi rates are approximately 4 basis points higher than debenture pricing noted above.

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SBA 504 Refi Program Expanded

On July 29th, the Small Business Administration published Interim Final Rule 021-15975, outlining enhancements to the SBA 504 REFI program. 

These changes are effective as of July 29, 2021. Important highlights include: 

504 Debt Refinancing with Expansion 

• The amount of debt eligible for refinance is increased to 100% of expansion costs (increased from 50%)

504 Debt Refinancing without Expansion 

• Qualified Debt must be at least 6 months old before the SBA application date to be eligible for refinance (reduced from 2 years)
• Allows the refinance of certain existing government guaranteed debt
  • The refinancing of any federally-guaranteed debt must provide a “substantial benefit” to the borrower – minimum 10% savings on the new installment amount attributable to the debt being refinanced
  • Existing SBA 504 Loan – Third Party Loan and the 504 loan must be refinanced, or the Third Party Loan must be paid in full
  • Existing SBA 7(a) Loan – refi eligibility requires a certified development company to verify that the original 7(a) lender is either unwilling or unable (due to secondary market investor input) to modify the original loan terms