Aug 19 Small Business Administration Offers Reduced Interest Rates For Its 504 Loan Program
As small businesses continue to seek credit and financing opportunities to stem the tide of the COVID-19 pandemic, the Small Business Administration (SBA) has taken further action to boost the economy. On August 18, 2020, the SBA reduced interest rates for its 504 Loan Program to 2.214% for 20-year loans and 2.269% for 25-year loans.
The SBA 504 loan program provides eligible small businesses with long-term, fixed rate financing to acquire fixed assets for expansion or modernization. These loans, which allow small businesses to create and maintain jobs and payroll, are made available through Certified Development Companies (CDCs). CDCs are certified, non-profit corporations that work with lenders, as well as the SBA, to promote economic development in their communities via longer-term, lower interest rate loans (generally capped at $5M).
Interested borrowers should click here for additional information.
Sax will continue to update you as further details are made available. Reach out to your Sax advisor or email [email protected] with questions. For more and on-going information relative to your state and business, visit Sax’s COVID-19 Resource Center.