CDC Announces SBA is Now Offering a New 25-Year 504 Debenture
Now Available for 504 Projects Approved on or after April 2, 2018
The Small Business Administration (SBA) has announced the availability of a 504 Loan, and the Debenture that funds it, with a 25-year maturity. This is in addition to the 10 and 20-year 504 Loan and Debenture that are currently available in the 504 Loan Program.
This new 25-year 504 Debenture is now available for 504 Projects that are approved on or after April 2, 2018.
Things to know about the new 25-year 504 debenture:
- The term of the Third Party Loan accompanying a 25-year 504 Loan must be at least 10 years.
- Auctions for 25-year Debentures are expected to be monthly, but this will depend on demand.
- Pricing for the 25-year Debenture will be set at auction, and will depend on market demand and general conditions.
For more information on this new SBA 504 Loan option, please contact Rob Evans, Senior Vice President & Loan Officer, at REvans@BDCofSC.org or 803-744-0308.