SBA 504 LOANS

COMMERCIAL REAL ESTATE  |  EQUIPMENT  |  REFINANCE

 

25-YR FIXED RATE

3.07%

20-YR FIXED RATE

3.02%

10-YR FIXED RATE

2.68%

REFINANCE RATE

+0.0348%

To contact SBA directly about Disaster Assistance Programs, call 800-659-2955 or email disastercustomerservice@sba.gov

Are you an Existing 504 Borrower?

On March 27, 2020, the Coronavirus Aid, RElief and Economic Security Act (the CARES Act) was enacted to provide emergency and immediate national economic relief and assistance across the American economy, including to small businesses.  Section 1112 of the CARES Act authorized SBA to pay, for a six month period, the principal, interest and associated fees that borrowers owe on covered 504 loans, 7(a) loans and Microloans.  The initial availability of this debt relief expired on September 27, 2020 (hereafter “First Round Section 1112 Payments”).

With the enactment of the Economic Aid Act on December 27, 2020, Congress amended section 1112 to authorize a second round of Section 1112 payments, which will cover the principal, interest, and associated fees that borrowers owe on covered loans, subject to availability (hereafter “Second Round Section 1112 Payments”).  The terms and eligibility are case-specific, so please refer to SBA Procedural Notice 5000-20095 for more details, or contact any member of our team.

Additional eligibility information can be found on our SBA Payment Relief page.

On December 27, 2020, the President signed the COVID Relief Act into law, which includes provisions for addressing the taxability of CARES Act Section 1112 payment subsidies.

CARES Act Section 1112 payments will not be treated as taxable income to the borrower for federal income tax purposes and any tax deduction arising from those payment subsidies will accrue to the borrower as if the payment were made by the borrower.  Please refer to the legislative text on page 2010 of the Act, paragraph (c) in line 20 for details.

For specific guidance on tax issues, particularly state tax implications, we recommend that all small businesses consult their tax professionals.

SBA Procedural Notice 5000-20087

  • If you have questions or concerns about how this may impact your SBA 504 Loan, feel free to reach out to our Servicing Team at 217-241-3000 or contact:
    • Randy Neumann | 217-241-3636 | neumann@growthcorp.com
    • Becky Minett | 217-241-4638 | minett@growthcorp.com
    • Braden Pope | 217-241-3635 | pope@growthcorp.com

COVID-19 Small Business Assistance

HELP IS AVAILABLE

federal disaster assistance options

The U.S. Small Business Administration will officially open the Shuttered Venue Operators Grant (SVOG) application portal on April 8, 2021 at 12 p.m. EDT for operators of live venues, live performing arts organizations, museums and movie theatres, as well as live venue promoters, theatrical producers and talent representatives to apply for critical economic relief, as those eligible entities are some of the first that had to shutter their doors a year ago in response to the COVID-19 pandemic.

Concerts, plays, dance performances, movie premieres, museum exhibits – these are the lifeblood of culture and community, and often the anchor for travel, tourism and neighborhood food and retail stores. We know that for the stage and venue operators across the nation that help make this culture happen, the pandemic has been devastating. Too many have been forced to lower the final curtain on their businesses. Today, with more than $16.2 billion available through the Shuttered Venue Operators Grants, help is here,” said SBA Administrator Isabella Casillas Guzman. “The SBA is committed to moving as quickly as possible to deliver this vital funding effectively and equitably – ensuring relief goes to those venue operators whose revenues have been most impacted by the pandemic.” 

The SVOG program was appropriated more than $16.2 billion for grants via the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act and the American Rescue Plan Act. Of these funds, at least than $2 billion is reserved for eligible SVOG applications with up to 50 full-time employees. Eligible applicants may qualify for grants equal to 45% of their gross earned revenue up to a maximum amount of $10 million for a single grant.

The SBA is accepting SVOG applications on a first-in, first-out basis and allocating applicants to respective priority periods as it receives applications. The first 14 days of SVOG awards, which are expected to begin in late April, will be dedicated to entities that suffered a 90% or greater revenue loss between April and December 2020 due to the COVID-19 pandemic. The second 14 days (days 15-28) will include entities that suffered a 70% or greater revenue loss between April and December 2020. Following those periods, SVOG awards will include entities that suffered a 25% or greater revenue loss between one quarter of 2019 and the corresponding quarter of 2020.

Prior to the opening of SVOG applications, the SBA hosted a national informational webinar (archived recording) to highlight the application process for potential eligible entities. The agency also  provided recurrent program updates and information via frequently asked questions, additional video tutorials, an application checklist and eligibility requirements through SBA’s dedicated SVOG website – www.sba.gov/svogrant – and targeted outreach to potential applicants.

A $28.6 billion restaurant and bar grant program will be made available soon. Members of the Independent Restaurant Coalition partnered with members of Congress to craft the legislation.

While the Small Business Administration (SBA) prepares to administer the Restaurant Revitalization Fund, businesses should take steps to organize the materials necessary to submit an application once it is available. Below are resources to learn more about the program and what businesses can do to prepare for the application. 

Please note that Restaurant Revitalization Fund applicants no longer need to sign up for a SAM.gov account or have a DUNS number. Stay tuned for more updates.

So far, SBA does not have information on how to apply for the Restaurant Relief Fund.  However, in the meantime, the Independent Restaurant Coalition has information on their website:

RESOURCES

 

 

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the CARES Act) was enacted to provide emergency and immediate national economic relief and assistance across the American economy, including to small businesses.  Section 1112 of the CARES Act authorized SBA to pay, for a six month period, the principal, interest and associated fees that borrowers owe on covered 504 loans, 7(a) loans and Microloans.  The initial availability of this debt relief expired on September 27, 2020 (hereafter “First Round Section 1112 Payments”).

With the enactment of the Economic Aid Act on December 27, 2020, Congress amended section 1112 to authorize a second round of Section 1112 payments, which will cover the principal, interest, and associated fees that borrowers owe on covered loans, subject to availability (hereafter “Second Round Section 1112 Payments”).  The terms and eligibility are case-specific, so please refer to SBA Procedural Notice 5000-20095 for more details, or contact any member of our team.

Key Details:

  • The debt relief payments are not a loan or a deferment.  The payments will be forgiven.
  • You do not have to apply for this…it is automatic.
  • For 504 Loans, the debt relief only applies to the 504 portion of the financing.  The first mortgage loan is through a bank, so borrowers should contact their lender if they need assistance with the first mortgage.
  • Any past or future payment subsidies made on behalf of borrowers will not be treated as taxable income for federal tax purposes.  However, borrowers are advised to check with their tax advisors, particularly regarding any possible state tax implications.

Additional eligibility information can be found on our SBA Payment Relief page.

The Paycheck Protection Program (PPP) provides loans to help businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. SBA is currently offering:

SBA is currently accepting Paycheck Protection Program PPP loan applications from participating community financial institutions (CFIs) and lenders with under $1 billion in assets, which includes approximately 5,000 institutions, including community banks, credit unions, and farm credit institutions. Lender Match can help you find a participating lender. The program will open to all lenders on January 19, 2021.  Please refer to SBA’s website for additional details.

Eligible businesses that have suffered substantial economic injury as a result of Coronavirus (COVID-19) can apply for up to $2 million in low-interest Economic Injury Disaster Loans.

Program Details:

  • This loan comes directly from the U.S. Treasury.  Applicants do not go through a bank or DCD to apply, but instead apply directly to SBA.   https://covid19relief.sba.gov/#/
  • Funds can be used for fixed debts, payroll, accounts payable and other bills that could have been paid had the disaster not occured.
  • Interest rates for this disaster are 3.75% for small businesses and 2.75% for nonprofits with terms up to 30 years.
  • There is no obligation to take the loan if offered and no cost to apply
The Express Bridge Pilot Program allows SBA Express Lenders authority to deliver expedited SBA-guaranteed financing on an emergency basis for disaster-related purposes.

Program Details:

Illinois Disaster Assistance options

As of 5 PM on December 15, 2020, the Illinois Department of Commerce and Economic Opportunity are no longer accepting applications for Business Interruption Grants. Applications submitted prior to that deadline are under review, and applicants will be contacted if further information or documentation is needed. The agency expects to make final awards by the end of the year.

  • Due to the high volume of applications received, the agency is unable to provide updates on review time of individual applications. If you have a specific question about information submitted within your application (e.g. something submitted incorrectly), please use the question form.

Illinois Department of Commerce and Economic Opportunity (DCEO).

Small Business Resources

As part of the U.S. Chamber of Commerce’s Path Forward initiative, this Digital Resources Center provides the latest state guidelines, sector-specific guidance, small business advice, and other tools and resources to help employers and employees return to work safely and successfully. We will regularly update these tools and resources as new information becomes available.

If you, like many small business owners, need a business counselor to help guide you through this uncertain time, you can turn to your local Small Business Development Center (SBDC), Women’s Business Center (WBC), or SCORE mentorship chapter.

Program Details:

  • To find a local resource partner, click here.
  • Counseling is free and training is low-cost.  Mentorship through SBDC’s and SCORE is always free.
  • In addition, the Minority Business Development Agency’s Business Centers (MBDCs), which serve minority business enterprises of all sizes, will also receive funding to hire staff and provide programming to help their clients respond to COVID-19. Not every state has a MBDC. To find out if there is one that services your area, visit this site.

RESPONSE TO CORONAVIRUS

MAKING THE BEST OF DIFFICULT TIMES

Koval Distillery refocused whiskey production to making hand sanitizer

Chicago, IL

Koval Distillery refocused their production away from whiskey to making hand sanitizer for the medical community, retirement homes and those on the front lines. They’ve already provided over 2,000 gallons.

Kemco Trucking is helping the National Guard transport medical supplies

Elk Grove Village, IL

Kemco is helping to transport COVID-19 supplies.  The company even transported much needed supplies provided by the National Guard to McCormick Place’s make-shift hospital.

Grab-a-Java is reminding us that "Everything Will Be Ok"

Springfield, IL

Grab-a-Java, a local coffee shop with two locations in Springfield, is using art to remind everyone “everything will be ok”.  In addition, the coffee shop is staying open to keep all the essential workers fueled and doing all they can to protect their customers and employees from the spread of COVID-19.

Fitzgerald's is hosting a series of "Stay At Home" Concerts

Berwyn, IL

Since Fitzgerald’s is closed, they are holding a series of “Stay At Home Concerts”, during which an artist rides around in a pickup truck throughout the neighborhoods performing music and taking song requests.  This is also available as a live stream and they are accepting donations for their staff via Venmo.

Fox Valley Auto Group is providing safe transportation

St. Charles, IL

Fox Valley Auto Group stepped up during this pandemic by providing their loaner vehicles as a form of free, safe and reliable transportation for health care workers on the frontline.  They completely sanitized the cars and provided a full tank of gas so health care workers can use them at no charge.

Ace Sign Co. is showing a "Sign of Support" for Healthcare Workers

Springfield, IL

Ace Sign Co.’s mission to not only show their support through an inspiring community-wide display of signs, but to also provide funds to the foundations that represent those hospitals on the front lines of the current pandemic facing America.

Growth Corp and SBA 504 Lending

SBA Loans continue to be available and no disruption in lending is expected.  Growth Corp is open for business and we do not foresee any interruptions in service.  However, we have asked our staff to limit face-to-face meetings.  Email and virtual meetings will be utilized as much as possible during these uncertain times.

Concerns/Questions About Your Existing 504 Loan

If you have questions or concerns about how this may impact your SBA 504 Loan, feel free to reach out to Growth Corp’s Servicing Team at 217-241-3000 or contact any member of our Servicing Team:

  • Randy Neumann | 217-241-3636 | neumann@growthcorp.com
  • Becky Minett | 217-241-4638 | minett@growthcorp.com
  • Braden Pope | 217-241-3635 | pope@growthcorp.com

 

 More resources

WOULD AN SBA 504 REFINANCE LOAN HELP ME?

Possibly.  Instead of borrowing additional money through government loan programs, it might be beneficial to tap into equity you already have. Interest rates are at historic lows right now. Add to that six months of debt relief, and this may be a great time to refinance using an SBA 504 Loan.  Consider this:

Cash-out Refinance – Eligible borrowers can obtain up to 20% of the appraised value on their assets to use towards future operating expenses (cash-out). The maximum loan-to-value for this option in 85% of the borrower’s real estate and equipment based on acceptable appraisals.

Consolidate Debt – Borrowers can often consolidate total debt obligations at a lower overall interest rate. Not only can this ease the burden of having loan obligations to several different lenders, it can also improve the borrower’s monthly debt service requirements.

Extended Maturity Dates – SBA 504 Refinancing offers terms up to 25 years and rates fixed for the life of the loan. Converting short-term debt into long-term financing can materially improve cash-flow.

No Out of Pocket Expenses – SBA 504 Refinancing allows borrowers to roll the ordinary closing costs and expenses into the loan.

NOTE: To be eligible for a 504 Refinance, the debt to be refinanced must have been for commercial real estate or equipment, be at least 24 months old and not be a government loan.

Benefits

  • The borrower’s equity in the collateral often fulfills the down payment requirement
  • Low, fixed interest rate on 504
  • Long loan term – up to 25 years
  • Access cash in the building
  • Payment stability
  • Protection from balloon payments
  • Up to $5 million for SBA portion of loan, no limit on overall project size
  • Keep your lender or allow us to match you with one of our lending partners

504 Refi Stats

$1.3B Refinanced since 2017
$348M Refinanced in 2019
Thousands of businesses have utilized a 504 Refi
Growth Corp is the Top 504 Refi Lender in the U.S.

Our mission is to advocate for small businesses.

We love our communities and believe small business is the foundation of their economic prosperity.  We will do all we can to support you and your business goals.  Start-ups to seasoned businesses and everything in between can benefit from working with Growth Corp.  Here’s why:

We Are An Industry Leader

We’re the #1 SBA 504 Lender in Chicago and Illinois.  Growth Corp also consistently ranks as one of the top ten SBA 504 Lenders nationwide.

In Business Since 1992

We’ve assisted thousands of businesses spanning various industries.  In fact, our portfolio is currently in excess of $675 million.

Trusted by the U.S. SBA

SBA recognized Growth Corp as an Accredited Lender after a thorough review of its policies, procedures and prior performance.

SBA 504 LOANS

How Will You Grow Your Business?

877-BEST 504

www.GrowthCorp.com

A Non-Profit Organization Focused Exclusively on Small Businesses

By using this website, you understand that Growth Corp is good, but not perfect (although we do try!). Therefore, it is possible that you may find information on this site that is no longer accurate.  Links, images, downloads, pages and blog posts may inadvertently contain information that has been superseded over the years.  You also understand that we aren’t giving any legal, tax, or financial advice.  So, while we hope our site makes you love 504 Loans as much as we do, the content herein is for informational purposes only.