SomerCor is a nonprofit, SBA Certified Development Company that specializes in SBA 504 loan origination and servicing since 1992.
The June 2020 SBA 504 debenture pricing was completed on 6/11/20:
25-YEAR TERM INTEREST RATE
2.60%
20-YEAR TERM 2.52% | 10-YEAR TERM 2.64%
SBA is offering a 504 Loan with a 25-year maturity for the acquisition of owner-occupied commercial real estate and related costs. This is in addition to the 10 and 20 year loans currently available in the 504 Loan Program. Loans are typically eligible for up to 90% financing of project costs. Rates include monthly servicing fees to CDC, SBA, and central servicing agent; based on SBA FY20 fees.
The SBA 504 refi is a strategic debt restructuring solution that helps your bank and your business clients. (Sample clients: RMC Stadium Cinemas / Pennyville Station)
During an economic downturn, the 504 refinance program offers banks a lending option to strengthen existing credits and loan portfolios. A banker can use the 504 refi to help new and existing customers take advantage of lower interest rates and access equity, while at the same time reducing their own credit exposure through the lower LTV. The full range of 504 refi benefits for lenders include:
The 504 refinance program is only available on debt from a commercial loan used to acquire commercial real estate. For a business to be eligible for the 504 refinance program, it must meet the following requirements:
Property must be minimum 51% owner-occupied and meet all other SBA 504 eligibility guidelines
Business and existing loan must be at least 2 years old (payments must be current for the last 12 months)
At least 85% of existing loan must have been for SBA 504-eligible purposes
Government guaranteed loans are not eligible to be refinanced
Other assets can be used as collateral to get to 90% LTV
Up to 20% of the appraised value can be used for cash out for other business expenses
Connect with a member of SomerCor's loan origination team today to learn more!
Brian Comiskey CPA, EVP, Chief Lending Officer (312) 360-3311 Email