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.
