October SBA 504 Interest Rates Start FY22 at Sub 3%
The October 2021 SBA 504 debenture pricing was competed on October 7, 2021.
25 Year Term 2.91%
20 Year Term 2.77%
10 Year Term 2.37%
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 FY22 fees. SBA 504 refi rates are approximately 1 basis point higher than debenture pricing noted above.
SBA 504 Program Operating Without InterruptionÂ
On September 30th, President Biden signed a continuing resolution approved by Congress to fund the government through December 3, 2021. As October 1 marked the start of a new fiscal year, the SBA 504 program is now operating without restriction and approving loans. This includes both those pending from FY21 and new submissions.
SomerCor will continue to work closely with the National Association of Development Companies (NADCO) in advocating for the SBA 504 program before the federal government. Stay tuned for updates on the rule for the new SBA 504 Express Program and additional efforts to strengthen the 504 program and its capacity long-term.
The state of Illinois officially proclaimed October is Manufacturing Month. Illinois ranks fourth in the country with over 18,000 manufacturing companies. As the economy rebounds, manufacturers face both increased labor challenges and new avenues for growth. Learn more about how the purchase of new equipment with the SBA 504 loan can help manufacturers diversify operations, increase efficiency, and offset energy costs.Â
