Changes to the SBA 504 Loan Program
The Small Business Administration announced on Tuesday, April 3rd that they will begin accepting applications for the SBA 504 25-year Debenture.
Here's what we know so far:
- The first funding date for 25-year Debentures will not be earlier than July 2018
- Rates are determined at the time of funding and are anticipated to be set at a spread above the 20-year Debenture rate. Actual rates will be determined at the sale of Debenture.
- For projects approved on or after April 2, 2018, the term may be changed through a request to SBA
- Loans approved prior to April 2, 2018 may not be extended to the longer term
- Prepayment penalty on the SBA 504 loan will remain at 10 years
- Third Party Loans for 25-year Debentures must have a term of at least 10 years
If you have an interested borrower or any questions, feel free to reach out! We will make sure to keep you in the loop as we learn more. Stay tuned!