Rates will be 0.21% lower for manufacturers (NAICS 31, 32, 33) if approved in the fiscal year 2026.
The new SBA 504 Program Fees have been released for FY 2026. Any loans approved on or after 10/1/2025 will use a servicing fee of 0.209%. The new servicing spread will be 1.309%, a decrease of 0.122% from FY 2025.
The real estate 504 rates decreased this month. The 25-year and 20-year real estate rates decreased by 6bps from the month prior. The 10-year equipment rate decreased by 6bps from September, as it adjusts every two months.
Government Shutdown Update
As the government shutdown continues, CDC New England would like to provide a brief update on the current situation:
· CDC New England is actively monitoring developments.
· The SBA retains a small "essential" staff who are continuing to fund loans.
· Loans approved prior to October 1, 2025, remain eligible to close and fund.
· CDC New England remains open and is actively processing new loan applications!
Facing a Deadline?
CDC New England will continue to underwrite and approve loans internally, subject to SBA approval when the government re-opens. If you proceed prior to SBA 504 approval, you do so at your own risk.
If your project cannot wait for the SBA to reopen, there are interim options available that still allow for an SBA 504 loan once operations resume:
· Bridge Loan Structure: Lenders may structure the financing as two separate loans, treating it as a 504 loan. The SBA portion must be a short-term, interest-only loan with a term of three years or less. Two separate notes are required—one for the lender portion and one for the SBA portion.
· Temporary Collateral: Lenders may require additional temporary collateral to secure the bridge loan. This collateral—such as commercial or residential real estate, cash, or other acceptable assets—can be released once the SBA 504 loan closes and funds.
· Collaborative Review: CDC New England strongly recommends working with one of our business development officers. This allows us to collaborate closely and review all loan documents prior to closing.
We will continue to share updates as more information becomes available. Please don’t hesitate to contact the CDC New England team with any questions!
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 4.781 + 1.309 servicing spread (25 years)
*Note Rate 4.800 + 1.309 servicing spread (20 years)
*Note Rate 4.310 + 1.309 servicing spread (10 years)
*For Loans Approved Between 10/01/25 - 9/30/26
Contact CDC New England for more information regarding SBA 504 financing.
