The U.S. Small Business Administration (SBA) announced updated interest rates for its 504 Loan Program offered by Certified Development Companies (CDC), allowing small businesses to apply for the lowest interest rates since July 2018, by offering 20 and 25-year interest rates at 2.214% and 2.269%, respectively.
William Manger, SBA chief of staff and associate administrator for the Office of Capital Access said, “These are favorable terms and are supportive of our nation’s goal to help our economy bounce back from the effects of COVID-19.”
“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,” he added.
“We are pleased that the 504 Loan Program continues to show double-digit year-over-year growth, especially in these extraordinary times.”
Small businesses looking for additional information on how to expand their business’s real estate or improve their working capital should visit: https://www.sba.gov/brand/assets/sba/sba-lenders/504-Loan-Fact-Sheet-Borrower-Version.pdf
“The core mission of the 504 Loan Program has and always will be to provide long-term financing to small businesses for the purchase or improvement of land, buildings, and major equipment, to facilitate the creation or retention of jobs and to support local economic development here in New Jersey,” said SBA New Jersey District Director Al Titone.
Under the 504 Loan Program, loans are made in conjunction with private sector lenders to small businesses by CDCs, which are certified and regulated by the SBA to promote economic development within their community.