SBA Economic Aid: Temporary 504 Loan Program Change - Refinancing of Third-Party Loans
East Texas Regional Development Center • March 12, 2021

On February 26, 2021, the SBA issued Procedural Notice 5000-20099 authorizing East Texas Regional Development Company (ETRDC), a Certified Development Company (CDC), the opportunity to refinance Third-Party Loans on existing 504 Projects. This Notice is part of Section 328(c) of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Economic Aid Act), enacted on December 27, 2020 (Pub. L. 116-260). The CDC may allow a Third-Party Loan on an existing 504 Project to be refinanced only once under the authority of Section 328(c) of the Economic Aid Act.
The refinance must be an amount that, when combined with the outstanding balance on the subordinate 504 loan, is not more than 90 percent of the total loan to value, as evidenced by an appraisal. The Third-Party Lender must provide the appraisal to the CDC free of charge (except for reasonable charges for photocopies). Any loan that refinances the Third-Party Loan of an existing 504 Project under this temporary authority must be closed and funded no later than December 26, 2021.
“We have been given the unique opportunity to offer one-time refinancing of existing 504 projects. In my years of lending, I have never seen this happen before. Our office is already seeing inquiries and applications from small businesses across the state taking advantage of this opportunity”, stated Chuck Vanderbilt, Lending Manager for East Texas Regional Development Company.
The Borrower should have a satisfactory credit history, should provide a description of how the new funds will be used and must demonstrate the ability to repay all the obligations from the operations of the operating concern on which the loan is based.
- 10-Year Term: 2.68%
- 20-Year Term: 2.99%
- 25-Year Term: 3.04%
For more information, please call Chuck Vanderbilt, ETRDC Lending Manager, at 903-218-6411
or chuck.vanderbilt@etcog.org.

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 .



