SIOUX FALLS, S.D. (Press Release) – The U.S. Small Business Administration announced the updated interest rates for the 504 Loan Program offered by Certified Development Companies (CDC). The program now allows for 10, 20, and 25-year interest rates at 2.231 percent, 2.364 percent, and 2.399 percent, respectively. Small businesses can now apply for a 504 loan at these low-interest rates.
“These are encouraging terms and supportive of our nation’s goal to bounce-back from COVID-19,” said William Manger, SBA Chief of Staff and Associate Administrator for the Office of Capital Access. “The longer terms and now lowest interest rates support and encourage entrepreneurs to step outside of the box and look at real investments.”
“Despite COVID-19, economic growth is happening in South Dakota,” said Jaime Wood, SBA South Dakota District Director. “The continuation of the low interest 504 lending and extended terms makes timing ideal for many owners to start or grow a small businesses now. Our excellent partner CDCs are the driving force behind the 504 Loan Program – there are six currently serving South Dakota with four located in state.”
See SBA’s 504 Loan Program factsheet for more information on how to expand your business real estate or improve your working capital.
The 504 Loan Program is an SBA business loan program authorized under Title V of the Small Business Investment Act of 1958, 15 U.S.C. 695 et seq. The core mission of the 504 Loan Program is to provide long-term financing to small businesses for the purchase or improvement of land, buildings, and major equipment, to facilitate the creation or retention of jobs, and to support local economic development. Under the 504 Loan Program, loans are made in conjunction with private-sector lenders to small businesses by CDCs, which are certified and regulated by the SBA to promote economic development within their community.
For questions about the 504 Loan Program, please contact the SBA South Dakota District Office.