Springfield, MO

Log in Subscribe

SBA adds 25-year terms to longstanding 504 loans

Posted online

The U.S. Small Business Administration rolled out a new long-term, credit-backed loan that allows an extra five years of maturity.

Businesses owners can now garner a 25-year term through the agency’s 504 Loan Program, according to a news release. At its core, the program provides funding to purchase or improve land, buildings and major equipment, as well as create or retain jobs.

SBA has guaranteed 10- and 20-year loans under the program since 1986. The new 25-year option more closely mirrors that of other mortgages offering longer terms, according to the release.

“This option for extending the payment cycle by an additional 60 months gives small-business borrowers the opportunity for lower monthly payments, which can significantly help their cash flow,” SBA Administrator Linda McMahon said in the release.

McMahon said the increased flexibility allows recipients to better position themselves in managing capital and combating growth of operating expenses. 

The 25-year term is available for 504 projects approved on or after April 4, said June Teasley, SBA’s regional communications director in Kansas City.

Under the 504 program, the agency collaborates with private lenders on loans to small businesses via Certified Development Companies. The CDCs are certified and regulated by the SBA to promote local economic development.


No comments on this story |
Please log in to add your comment
Editors' Pick

Who’s buying 417 Rentals’ homes?

Local developer plans renovations after investing $5 million in foreclosed property acquisitions.

Most Read Poll
Should Springfield City Council have approved recent applications for historic building designations?

View results