SBA Announces New Reduced 504 Loan Debenture Rates
Small Business Administration • November 13, 2020
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 very encouraging terms and very 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.”
Partnered with the SBA are the CDCs, which are the driving force behind the 504 Loan Program. 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 your local SBA District office.
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$16.5 Million in Grants Available
The U.S. Department of Agriculture has announced that it is making $27.7 million in grants available through the Rural Business Development Grant Program (RBDG). This program provides funding for business and community initiatives that promote economic growth and job creation. Eligible applicants can include rural cooperatives, state government agencies, towns, and communities, nonprofit corporations and institutions of higher learning, and federally recognized Tribes. Individuals and for-profit businesses or organizations are not eligible to apply. Applications will compete in two separate categories: Business opportunity grants: May be used for business support centers, technology-based economic development, leadership and entrepreneur training, feasibility studies, business plans, long-term strategic planning, and other eligible activities. Business enterprise grants: May be used for training and technical assistance, project planning, business counseling, market research, feasibility studies, and product or service improvements, buying or developing land, easements, or rights of way, including access streets and parking areas, constructing or renovating buildings, and buying machinery and equipment, capitalizing revolving loan funds, and supporting rural business incubators and community economic development and other eligible activities. Electronic applications must be submitted by 4:30 p.m. local time through Grants.gov on the due date. The Rural Business Development Grant Program has two different closing dates: June 15, 2026, only applies to Strategic Economic and Community Development (SECD) applications. June 30, 2026, applies to the remainder of the applicants. For more information on how to apply please visit on gov or contact your local USDA Rural Development office .
