August 18, 2020 — The U.S. Small Business Administration announced updated interest rates for the 504 Loan Program offered by Certified Development Companies (CDC) allowing small businesses to apply for low interest rates offering 20 and 25-year interest rates at 2.214% and 2.269%. The SBA 504 Loan Program provides long-term financing to small businesses for the purchase or improvement of land, buildings, and major equipment to facilitate the creation and retention of jobs.
“These are favorable terms and are supportive of our nation’s goal to help our economy bounce back from the effects of COVID-19, said William Manger, SBA Chief of Staff and Associate Administer for the Office of Capital Access. “CDCs are the driving force behind the 504 Loan Program, and these longer terms and low interest rates will only support and encourage entrepreneurs to step outside of the box and look at real investments.”
Under the SBA 504 Loan Program, CDCs, certified and regulated by the SBA, work with the SBA and private sector lenders to provide financing to small businesses to promote economic development.
Additional information is available here.