January 2021 SBA 504 Effective Interest Rates
The January 2021 SBA 504 debenture pricing
was competed on January 7, 2021.
25 Year Term 2.69%
20 Year Term 2.65%
10 Year Term 2.44%
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.
SomerCor Update: Federal Aid for Small Businesses on the Way
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On December 21, 2020, Congress passed H.R. 133, the Consolidated Appropriations Act for 2021. It was signed into law on December 28th. The Small Business Administration is expected to provide guidance on the Act’s SBA provisions in the coming weeks.
This $2.3 trillion package funds the federal government for FY2021 and several COVID-19 initiatives focused on small business relief.
The SomerCor team is ready to work with our lending partners to support the country’s economic recovery through the SBA 504 program.
Ink Factory Uses 504 Loan to Turn Business Vision Into Reality
Ink Factory has helped organizations – from Fortune 100 companies to non-profits – bring their ideas to life with the help of visual note-taking.
SomerCor originated the SBA 504 loan to finance the purchase and renovation of Ink Factory’s new headquarters in Chicago’s Avondale neighborhood.
“Working with SomerCor was the easiest part of our entire project,” said Ink Factory Co-Founder & CEO, Dusty Folwarczny. “This project was a first for us and the SomerCor team answered all of our questions promptly. We are so thankful for their professional service!”
