December 10, 2024
December 2024 SBA 504 Funding Rates:
The new SBA 504 Program Fees have been released for FY 2025. Any loans approved on or after 10/1/2024 will use a servicing fee of 0.331%. The new servicing spread will be 1.431%, a decrease of 0.033% from FY 2024.
The real estate 504 rates decreased this month. The 25 year and 20 year rates both decreased by 19bps from the month prior. The 10 year equipment rate remained as-is from November, as it adjusts every two months.
Effective November 15, 2024 some significant improvements have been made to the 504 Refinance Programs:
1) Loans being refinanced must have been used to fund a project where at least 75% of the proceeds were used for eligible purposes (previously 85%).
2) With the exception of special purpose properties tied to refinance with expansion, all refinance projects can have an LTV up to 90%. Previously, there was an 85% cap for projects with cash out.
3) The 20% LTV cap for Eligible Business Expenses has been eliminated.
4) Working Capital Lines, Business Credit Cards, and “Other Secured Debt” have been added back to Eligible Business Expenses.
5) The Substantial Benefit Test now requires some improvement in debt service, rather than a 10%+ improvement.
Recent SBA 504 Deals from CDC New England:
SBA 504 Term Loans:
- Long-term loans for purchasing land and buildings, new construction, renovation and leasehold improvements, machinery & equipment
- Lowest cost; low rate fixed for 10, 20, or 25 years
- Down payment financing, if needed
- Bridge financing available
*Note Rate 4.872 + 1.431 servicing spread (25 years)
*Note Rate 4.891 + 1.431 servicing spread (20 years)
*Note Rate 4.984 + 1.431 servicing spread (10 years)
*For Loans Approved After 10/01/24
Contact CDC New England:
Paul F. Flynn, Jr., President & CEO
(781) 928-1133
(617) 921-2695 (cell)
Mike Topalian, Managing Director
(781) 928-1122
(508) 612-5661 (cell)
Dave Raccio, Senior VP – Director of SBA Lending
Territory: New England
(860) 218-2901
(203) 780-1097 (cell)
Carol Brennan
Territory: New England
(781) 928-1123
(413) 237-6648 (cell)
Nancy Gibeau
Territories: Massachusetts, Rhode Island, & Connecticut
(508) 254-7891 (cell)
Matt Brothers
Territories: Massachusetts, New Hampshire, & Connecticut
(781) 928-1124
(603) 512-3411 (cell)
Lauren Franco
Territories: Connecticut, Western Massachusetts, & Vermont
(860) 299-6025 (cell)
Beth Chea
Territories: New Hampshire & Eastern Massachusetts
(603) 969-8144 (cell)
Patrick Daaboul
Territories: Massachusetts and Southern New Hampshire
(617) 817-7734 (cell)
