Market Overview

SBA Announces New Reduced 504 Loan Debenture Rates

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Washington, Nov. 13, 2020 (GLOBE NEWSWIRE) -- The U.S. Small Business Administration announced the updated interest rates for the 504 Loan Program offered by Certified Development Companies (CDC). The program now allows for 10, 20, and 25-year interest rates at 2.231 percent, 2.364 percent, and 2.399 percent, respectively. Small businesses can now apply for a 504 loan at these low-interest rates.

"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. "The longer terms and now lowest interest rates support and encourage entrepreneurs to step outside of the box and look at real investments."

Partnered with the SBA are the CDCs, which are the driving force behind the 504 Loan Program. See SBA's 504 Loan Program factsheet for more information on how to expand your business real estate or improve your working capital.

The 504 Loan Program is an SBA business loan program authorized under Title V of the Small Business Investment Act of 1958, 15 U.S.C. 695 et seq.  The core mission of the 504 Loan Program is 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.  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.

For questions about the 504 Loan Program, please contact your local SBA District office.                                     

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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. To learn more, visit https://www.sba.gov.


Shannon Giles
United States Small Business Administration
Shannon.Giles@sba.gov
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