After a record $1.28 billion funding for September, the SBA 504 Loan Program continues to see high volume both nationally and locally.
Here at Seedcopa + SeedcoDE, we’re working with new (and more) bank partners than we were one year ago on SBA 504 loans.
“While the 504 program is experiencing historic low interest rates, it’s also the structure that is appealing to more and more people right now,” says Seedcopa + SeedcoDE Managing Director Sherwood Robbins. “Coupling less money out of pocket with long-term, fixed interests rates saves money today and provides the confidence of lower monthly payments and improved cash flows well into the future. This is essential to small businesses during the COVID-19 crisis and moving forward.”
According to the National Association of Development Companies (NADCO), September saw the SBA 504 Loan Program completing its largest monthly funding of loans in the program’s 34-year history, more than doubling its previous record set in September 2012. In addition to low interest rates and debt relief provided by the CARES Act, the high loan volume can be attributed to a 25-year term on 504 loans.
Recognizing this achievement, NADCO President and CEO Rhonda Pointon highlighted the team effort of NADCO member CDCs, their lending partners and SBA colleagues, commenting, “America’s small business are vital engines of job opportunities and economic development in local communities across the country. The historic funding in September continues to validate the need and importance for community-based, mission lenders like our CDCs and for important tools like our 504 loan program in providing much needed access to capital to small businesses. Our member CDCs continue to work daily to assist small businesses and entrepreneurs as they continue on the road to economic recovery and growth.”