504 Relief Loans

504 Loan Program Helps Assists Nation’s Small Businesses with Record $1.28B Funding in September

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The Small Business Administration (SBA) 504 Loan Program completed its largest monthly funding of loans in the program’s 34-year history, including 1,462 loans for nearly $1.3 million more than double the previous record set in September 2012. Historic levels of 504 loan closings and funding’s were driven by record low interest rates and debt relief provided by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Additionally, small businesses continue to benefit from SBA’s April 2018 introduction of a 25-year maturity option for 504 loans which complemented the program’s 10- and 20-year terms. The 25-year term provides an affordable, fixed-rate option with an attractive term that increases the 504 loan program’s usefulness by lowering monthly payments and improving borrower cash flow – particularly critical, as small businesses continue economic recovery from the COVID crisis.

 

Premier Business Lending, a California Licensed Lender recently began offering SBA product 504 Loan Program and the 7A loan program in order to help current customers during these difficult times.

 

The 504 Loan Program is an SBA business loan program authorized under the Small Business Investment Act of 1958. 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. 504 loans offer fixed rates for 10, 20 and 25 years and finance project costs of approximately $100,000 to $25,000,000. Under the 504 Loan Program, loans are made in conjunction with private sector lenders to small businesses by Certified Development Companies (CDCs), which are certified and regulated by the SBA to promote economic development within their community.

Small Business Loans COVID-19

Covid Updates For Small Business

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Nearly 66,000 businesses have folded since March 1, according to data from Yelp, which provides a platform for local businesses to advertise their services and has been tracking announcements of closings posted on its site. From June 15 to June 29, the most recent period for which data is available, businesses were closing permanently at a higher rate than in the previous three months, Yelp found. During the same period, permanent closures increased by 3 percent overall, accounting for roughly 14 percent of total closures since March.
Researchers at Harvard believe the rates of business closures are likely to be even higher. They estimated that nearly 110,000 small businesses across the country had decided to shut down permanently between early March and early May, based on data collected in weekly surveys by Alignable, a social media network for small-business owners.
The silver lining in this pandemic for small business that decide to stay in business are that lending institutions such as Premier Business Lending have opened up underwriting guidelines. This is important in order for businesses to obtain an approval for their company. Rates are teetering a bit in the commercial finance sector due to overall economic nervousness of banks wanting to see how the pandemic continues to affect the Country. Premier Business Lending has seen a hike in customers borrowing habits over the last 60 days. With our Small Business Loans, we’re able to provide financing for your company. Equipment financing in industries such as Transportation, Construction and Manufacturing has increased by 15% while applications received from the equipment vending partners has increased by 13%.
Small Business need help during this period of time and fortunately we can help.