The U.S. Small Business Administration (SBA) has announced the updated interest rates for the 504 Loan Program offered by Certified Development Companies (CDC), the administration reported on Friday.
"These are very encouraging terms and very supportive of our nation's goal to bounce-back from COVID-19," said William Manger, SBA chief of staff and associate administrator for the Office of Capital Access. "CDCs are the driving force behind the 504 Loan Program. The longer terms and low interest rates support and encourage entrepreneurs to step outside of the box and look at real investments.”
Under SBA’s revisions, small businesses will be able to apply for the lowest interest rates since July 2018. The program will provide 20 and 25-year interest rates at 2.214 percent and 2.269 percent, respectively. The loan program has been authorized under Title V of the Small Business Investment Act of 1958.
SBA has adjusted the program to meet the administration’s core mission of providing 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.
“We are pleased that the 504 Loan Program continues to show double-digit year-over-year growth, especially in these extraordinary times," added Manger.
About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations.
