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SBA 504 LOANS

COMMERCIAL REAL ESTATE  |  EQUIPMENT  |  REFINANCE

 

25-YR FIXED RATE

2.97%

20-YR FIXED RATE

2.86%

10-YR FIXED RATE

2.67%

REFINANCE RATE

+0.0348%

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

COVID-19 Small Business Assistance

HELP IS AVAILABLE

disaster assistance options

August 11, 2021 – Today, the U.S. Small Business Administration is announcing a call to all eligible Shuttered Venue Operators Grant (SVOG) applicants seeking economic aid for live entertainment small businesses, nonprofits, and venues. New applications will be accepted until 11:59 p.m. PT on Friday, August 20, 2021. The SVOG program has so far awarded $8.4 billion in grants to more than 10,800 businesses to assist in getting the nation’s cultural institutions, which are critical to the economy and were among the first to shutter, back on track.

While the application portal will close to new applicants, the SBA will continue delivering economic aid to help venues recover by providing critical relief through the supplemental awards program. Later this month the SBA will open the program for supplemental SVOGs for 50% of the original award amount, capped at a total of $10 million (initial and supplemental combined). Details will be announced at a later date. Additionally, to ensure no eligible venue is left behind, the SBA is currently accepting, by invitation, applications for reconsideration of award amounts and appeals. This rare opportunity gives applicants a chance to prove their eligibility and reverse a prior decision. SBA is committed to delivering relief to entertainment venues through these various options. Should the need arise, the SBA may reopen the portal or make other adjustments to its plan to best meet the needs of small businesses.

“After making much-needed improvements to this vital program, we’ve made swift progress getting more than $8 billion in funds into the hands of more than 10,800 performing arts venues and other related businesses – two-thirds of which employ less than 10 employees. These small businesses suffered disproportionate impacts from the pandemic and were often left out of early rounds of relief,” SBA Administrator Isabella Casillas Guzman said. “However, we also know so many small businesses continue to struggle. That’s why, as this program nears the finish line, we’re providing additional funding options for our hardest-hit venues through our supplemental awards program, which will provide another critical lifeline to ensure businesses can reopen and stay open.”

“Simply stated, the Shuttered Venues Operator Grant was our lifeline. The grant has allowed us to return to full operation, including staffing and programming,” stated President and CEO of The Palace, a theater in Stamford, CT, Michael Moran.  “In early 2020, we planned for closing just three or four weeks. As the pandemic continued to worsen, so did our fears of never reopening. The Palace closed for 15 months, with expenses continuing to accumulate against bleak revenue prospects.  The SVOG grant through the SBA saved us and can be credited with not only our recovery but that of Stamford’s entire theater district.”

Moran continued, “Our theatrical community is so appreciative of the exceptional support of the SBA. The program and funds ensure the preservation of our community, allowing artists and audiences the unique experience of joy and enrichment through the arts.”

Since receiving the SVOG, The Palace and other venues have raised their curtains and welcomed back artists and audiences.

SBA’s Office of Disaster Assistance Customer Service Center is available from 8 a.m. to 8 p.m. ET to provide technical assistance with the SVOG application portal and can be reached at

1-800-659-2955 or, for the deaf and hard-of-hearing, at 1-800-877-8339. For additional information on SBA’s Economic Relief programs, visit COVID-19 relief options (sba.gov).

Further, SBA’s resource partners, including SCORE Mentors, Small Business Development Centers, Women’s Business Centers, and Veterans Business Outreach Centers, are available to provide entities with individual guidance on their applications. Applicants can find a local resource partner via a zip code search at  http://www.sba.gov/local-assistance. For weekly SVOG funding data reports, visit www.sba.gov/svog.  

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 $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.   

August 11, 2021 – As part of Governor JB Pritzker’s overall economic recovery strategy, the $250 million Back to Business (B2B) grant program aims to deploy small businesses recovery grants for those hit hardest by the COVID-19 pandemic. The B2B grant program builds on the success of last year’s Business Interruption Grant (BIG) program – an equity focused business relief program, which directed $290 million to 9,000 businesses in 98 communities across Illinois. B2B is a key component of the Governor’s $1.5 billion economic recovery plan, aimed toward a swift and equitable deployment of American Recovery Plan Act (ARPA) funds that have been designated for Illinois to assist in recovery from the COVID pandemic.

To assist small businesses with the B2B application process and other upcoming or ongoing economic recovery grant programs offered at the State or federal level. DCEO has invested $9 million in support of Community Navigator organizations working in every region of the state.  These organizations will provide technical assistance to businesses, with a focus on underserved businesses including minority, rural, veteran and women-owned businesses.

 Funding available:

  • $250 million to small businesses across the state that experienced losses in 2020 due to COVID-19, including the following set-asides.
    • $100 million – Businesses located in Disproportionately Impacted Areas (DIAs). (See DIA Map below)
    • $30 million – Arts and Entertainment businesses that didn’t receive Shuttered Venue Operators grants
    • $25 million – Restaurants and taverns that didn’t receive the Restaurant Revitalization Fund
    • $25 million – Hotels
    • $25 million – Businesses that didn’t receive a BIG grant due to exhaustion of funds
  • Grants will range from $5,000 to $150,000 per business and can be used to cover a wide range of operations/staff/overhead costs
    • Up to $250,000 for hotels

 Eligibility requirements:

  • Businesses with revenues of $20 million or less in 2019 and a reduction in revenue in 2020 due to COVID-19
    • $35 million or less for hotels
  • Priority will be given to the following categories:
    • Hard-hit industries (see eligibility guidelines for a full list of priority industries and their definitions)
    • Hard-hit areas – DIAs comprising of 176 zip codes
    • Businesses who have yet to qualify for state funding or federal assistance (including the Paycheck Protection Program (PPP), Restaurant Revitalization Fund (RRF), business Interruption Grant (BIG), Shuttered Venue Operators Grant (SVOG), and more)
    • Businesses that had less than $5 million in revenue in 2019
  • Learn about eligibility guidelines

 How to apply:

  • Application Portal opening August 18.
    • Applications can be tracked in real-time
    • Allies for Community Business (A4CB), DCEO’s grant administrator, will begin accepting applications on Wednesday, August 18, 2021
  • Documentation needed:
    • Business owner ID (ITIN business owners eligible)
    • Business’s 2019 AND 2020 Federal tax returns
    • Two (2) business bank statements – one from the period April through December 2020, and most recent statement
  • Prepare for the application process early by learning about the information and documents required
    • Application is also available in: Spanish, Polish, Chinese, Hindi, and Arabic (coming soon)
  • List of Frequently Asked Questions

Need help? Application assistance and webinars

Over 100 community navigators providing 1:1 regional support service for small businesses. Find a community navigator with the B2B search tool.

  • B2B Webinar: Friday | August 13 | 10:00AM
  • B2B Webinar (español/Spanish): Friday | August 13 | 12:00PM
  • B2B Webinar: Tuesday | August 17 | 3:00PM
  • B2B Webinar: Thursday | August 19 | 11:00AM

July 28, 2021 – The  U.S. Small Business Administration (SBA) is launching a streamlined application portal to allow borrowers with Paycheck Protection Program (PPP) loans $150,000 or less through participating lenders to apply for forgiveness directly through the SBA.  

“The SBA’s new streamlined application portal will simplify forgiveness for millions of our smallest businesses — including many sole proprietors — who used funds from our Paycheck Protection Program loans to survive the pandemic,” said Administrator Isabel Casillas Guzman.  “The vast majority of businesses waiting for forgiveness have loans under $150,000. These entrepreneurs are busy running their businesses and are challenged by an overly complicated forgiveness process. We need to deliver forgiveness more efficiently so they can get back to enlivening our Main Streets, sustaining our neighborhoods and fueling our nation’s economy.”

This new change will help rush relief to over 6.5 million smallest of small businesses which has been the Administrator’s priority since day one. The new forgiveness platform will begin accepting applications from borrowers on August 4th, 2021.  Lenders are required to opt-in to this program through https://directforgiveness.sba.gov. In addition to the technology platform, the SBA is standing up a PPP customer service team to answer questions and directly assist borrowers with their forgiveness applications.  Borrowers that need assistance or have questions should call (877) 552-2692, Monday – Friday, 8 a.m. – 8 p.m. EST.

“This initiative will allow PPP borrowers to put their concerns of achieving full forgiveness behind them and focus on operating and growing their businesses again,” said Patrick Kelley, Associate Administrator for SBA’s Office of Capital Access. “We are pleased to be able to assist financial institutions across the U.S. in processing forgiveness applications for small business owners.” 

Paycheck Protection Program Summary

  • Overall, the SBA and lenders have worked to originate over 11.7 million loans totaling nearly $800 billion in relief to over 8.5 million small businesses.

In 2021:

  • SBA approved over 6.5M loans totaling over $275B
  • The average loan size was ~$42 thousand (compared to $101 thousand in 2020)
  • 96% of loans went to businesses with fewer than 20 employees (compared to just 87% in 2020.)
  • 32% of loans went to businesses in LMI communities (compared to just 24% in 2020)

Direct Forgiveness Summary

  • Over 600 banks have opted in to direct forgiveness, enabling over 2.17mm borrowers to apply through the portal (This represents 30% of loans $150,000 or less that have not yet submitted for forgiveness)

“As one of the leading PPP lenders in the nation, Customers Bank is proud to partner with SBA to deliver responsive digital loan forgiveness service to the small business borrowers,” said Sam Sidhu, President & CEO of the bank.  “The streamlined and efficient SBA PPP loan forgiveness portal will help borrowers and lenders move forward with economic growth and job creation following the pandemic.  We encourage other lenders to join Customers Bank and opt-in to the SBA portal.”

Established by the CARES Act in 2020, the PPP was among the first COVID-19 small business economic aid programs and provided more than $798 billion in economic relief to small businesses and nonprofits across the nation, keeping employees working, and helping businesses come back stronger than ever.  View the Interim Final Rule on PPP Forgiveness.

Other programs include Economic Injury Disaster Loan (EIDL), EIDL Advance, Targeted EIDL Advance, Supplemental EIDL Advance, Restaurant Revitalization Fund, Shuttered Venue Operators Grant, and SBA Debt Relief program. To learn more about these programs, please visit www.sba.gov/relief.   

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.

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:

The Restaurant Revitalization Fund portal is now closed. On June 10th, members of Congress introduced the Restaurant Revitalization Fund Replenishment Act to add $60 billion dollars to the fund to support independent restaurants and bars. We’re advocating for the program to be refilled so that everyone who needs relief can access it. 

What is the RRF?

The American Rescue Plan Act established the Restaurant Revitalization Fund (RRF) to provide funding to help restaurants and other eligible businesses keep their doors open. This program, administered by SBA, will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.

For more information, visit sba.gov/restaurants or in Spanish at sba.gov/restaurantes.

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

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.