Take Advantage of Temporary COVID-19 Relief Benefits for SBA 504 Program Before They Expire!

The April 2021 SBA 504 debenture pricing was competed on April 8, 2021.

25 Year Term 3.07%

20 Year Term 3.02%

10 Year Term 2.68%

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

Take Advantage Of The 504 Loan
Temporary Benefits Before They Expire

Under enacted federal COVID-19 relief legislation, SBA 504 loans approved before September 30, 2021, access the following benefits:

• Temporary fee elimination for the 504 loan program
  • From now to September 30, 2021, or until the appropriated funds run out
    • Elimination of .5% Third Party Lender fee
    • Elimination of 1.5% CDC Fee
• Payment Subsidies
  • For loans approved now through September 30, 2021, or until the appropriated funds run out
    – Three months of payments made by SBA on behalf of the borrower
    – Payments are capped at $9,000
    – Covers principle, interest and fees
• Tax reporting requirements of CARES Act Payments

Loan volume is at an all time high and is expected to only increase through the summer. Based on the SBA’s timetable, submitting deals as soon as possible will make a big difference due to the September 30 deadline for newly authorized deals to receive payment subsidies and fee waivers.

Contact us for an estimated rate sheet to see how much your client will save!