SBA 504 August 2023 Interest Rates

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The August 2023 SBA 504 debenture pricing was completed on August 10th, 2023.

25 Year Term 6.55%

20 Year Term 6.60%

The 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 FY23 fees. SBA 504 refi rates are approximately 2 basis points higher than debenture pricing noted above.

CLICK TO DOWNLOAD SBA 504 REFERENCE GUIDE

CLICK TO DOWNLOAD SBA 504 REFI REFERENCE GUIDE

On August 1st, new rules impacting the SBA 504 program went into effect. Per the Small Business Administration (SBA), these program updates seek to “increase small businesses’ ability to access funding to start up and grow.” Specifically, the SBA has eased its eligibility, credit, and documentation requirements resulting in more streamlined loan processing and faster approvals. Click here to learn more.

The SBA 504 loan process has not changed for third party lending partners, but these program updates will allow CDCs the flexibility to continue to use prudent underwriting practices and maintain requirements to focus on ensuring repayment ability.

We anticipate the SBA will release an updated version of SOP 50 10 7 with technical corrections in the future. Stay tuned for updates on this and other news related to the SBA 504 program.

Additional Small Business Resources

Please note SomerCor is not the administrator of these grant programs.

SomerCor is proud to be a part of the robust economic development ecosystem in Illinois. We partner with community development financial institutions, chambers of commerce, other business support nonprofits, and municipalities to meet the capital needs of entrepreneurs.

As part of that effort, below are two current grant programs open for applications. Please share with any small businesses clients that would be a good fit. Any questions can be directed to Kim Brisky at kbrisky@somercor.com.

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Cook County Source Grant

DEADLINE: August 18th

Cook County's 2023 Source Grant will provide $40 million in grant funds to small businesses to help stabilize operations, foster recovery and resiliency, and advance equity in a post-pandemic economy.

Businesses must be located in Cook County with fewer than 20 full-time employees and have been in business prior to 2020 to be eligible to apply. Grants will range between $10,000-$20,000, based on 2019 gross revenue.

LEARN MORE

Chicago Recovery Plan -
Community Development Grants
DEADLINE: August 18th

The City of Chicago is accepting applications for grant funding to support local commercial, mixed-use, and light manufacturing development. DPD will prioritize projects in areas of Chicago where there is a history of disinvestment or limited private investment.

Grant funding can be used for pre-development, construction, or renovation costs for permanent capital improvement projects.

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SomerCor is a nonprofit, SBA Certified Development Company specializing in SBA 504 loan origination and servicing. For over 30 years, SomerCor has proudly partnered with lenders and small businesses throughout Illinois.

Contact our team today - we are your bridge to the SBA 504 program.