25-YR FIXED RATE
5.72%
20-YR FIXED RATE
5.78%
10-YR FIXED RATE
5.61%
MANUFACTURER'S RATE
5.48%
empowering economic growth
504 loan program
MARCH 2026
SBA 504 FIXED EFFECTIVE RATES
(monthly servicing fees included)
The March 2026 SBA 504 debenture pricing:
- Comparable Treasury Market Rate: 4.13%
- SBA 504 Debenture Rate (20-YR): 4.59%
- SBA 504 Debenture Rate (25-YR): 4.59%
- 20-Yr Debenture Pool: $13 million (20 loans)
- 25-Yr Debenture Pool: $501 million (411 loans)
Next pricing date is April 9, 2026
What’s New?
Reduced Fees for Manufacturers
Fee waivers are still in place for manufacturing businesses in NAICS sectors 31-33. These businesses will see a waiver of both the upfront guaranty fee and the ongoing servicing fee, which can mean big savings.
Alternative Option for New LPR Rule
As of March 1, 2026, lawful permanent residents are no longer eligible owners on SBA-backed loans, including 504. However, if a business restructures its ownership so that 100% of the ownership is held by U.S. citizens, SBA has indicated it will not apply the traditional six-month lookback requirement. This provides a pathway for otherwise eligible businesses to move forward without waiting, provided the ownership change is properly documented and completed prior to approval.
Expanded Access to Debt Refinancing
Recent changes to SBA 504 debt refinancing rules make the program significantly more flexible and lender friendly. The updated guidance allows refinancing up to 90% loan-to-value, broadens eligibility for qualified debt, and simplifies documentation requirements. Also, the substantial benefit test has been modified, making it easier to position 504 as a strategic refinancing tool…not just for expansion or purchase, but for improving cash flow, stabilizing long-term debt, and strengthening borrower balance sheets.
A Powerful Tool for Lenders to Attract & Retain Clients
SBA 504 loans help meet the diverse financial needs of growing businesses, while helping your bank strengthen deposits and fee income. In addition, SBA 504 helps maximize middle-market lending as more mid-sized businesses are now eligible for 504 loans.
Stay Up to Date
Staying up to date on 504 changes and new opportunities can help attract clients and solidify long-standing relationships in a competitive market.
Increased Production
Training gives your team the tools to quickly structure, explain, and identify eligible deals. That means less time educating yourself during the sales cycle and more time getting new deals in.
Spot Hidden Opportunities
Are you overlooking possible 504-eligible deals? Learn how to uncover opportunities others might miss, such as refinancing with cash-out or taking advantage of lower fees for manufacturers.
Differentiate Yourself
Many lenders advertise “SBA Loans” as a generic offering, but with the financing and refinancing capabilities of SBA 504, you can become the expert for those commercial real estate, construction, or cap-ex heavy industries.
Drive Revenue Growth
504 loans often finance larger-ticket projects, and many come with repeat financing opportunities as businesses expand. Plus, the partnership offered through the structure of 504 financing means less risk and higher deposits.
Whether you want to schedule a time to review a potential project or set up a presentation for your entire lending team, we’re here to help.
Quick Links for Lenders
Interest Rate History
Loan Calculator
504 vs 7a
Quick Qualifiers
Forms
Recent News…
2024 Illinois Lender Forums
Join us for a series of 2024 Illinois Lender Forums. SBA’s Illinois District Office, SCORE and Illinois' SBDC Network are holding a series of free forums to update commercial lenders on agency programs and services. Topics will include SOP 50 10 changes, Lender...
Is New Construction on the Horizon? Think SBA 504
Are you in the market to finance new construction? Maybe your business has grown and it’s time to move into your own building. Maybe you’ve even looked at commercial real estate for sale or lease, but you just haven’t found what you’re looking for. The location is...
Growth Corp has long participated in the VetLoan Advantage program. This initiative aims to increase access to the 504 Loan Program for our nation’s brave veterans. Ask about the special discounts we offer veterans…it’s Growth Corp’s way of giving back as we strive to meet the needs of veteran-owned businesses.
Project-Specific Solutions
EXPANSIONS
Equipment Purchases
Building Acquisitions
Land Purchases
New Construction
Leasehold Improvements
HOW THE 504 HELPS
Long-term fixed rates
Predictable payments
No future balloons
Low down payments
REFINANCING
Real Estate Loans
Lines of Credit
Consolidate Multiple Loans
Obtain Working Capital
Cash-Out Available
HOW THE 504 HELPS
Eliminates balloon payments
Fully amortized
Existing equity = down payment
Can provide a cash out option
GREEN ENERGY
New Builds w/ Sustainable Energy
Energy Efficient Upgrades
Energy Generating Equipment
Reduction of energy consumption by 10%
Increased use of sustainable design
HOW THE 504 HELPS
Removes $ limit on 504 portion
Borrowers can take multiple loans
Slashes the bank’s risk to 50%
Up to $5.5 million per project
Growth Corp is Your Partner!
We know the focus of commercial banking is to support the community and entrepreneurial sector. And so is ours! The 504 Loan Program is a partnership with banks that offers many benefits:
- Banks reduces their risk to 50%
- Banks gets first lien position on a 504 loan structure
- When clients are struggling with pending balloons, Growth Corp’s 504 offers refinancing options
- Banks can offer their clients a low, fixed rate product with a long loan term
- SBA lending helps Banks fulfill CRA, Rural and Public Policy goals
- Manages commercial real estate concentration issues
- Opens up lending availability
- Maximizes middle market lending
- High size limits and business size caps
- Preserves working capital, which keeps cash in deposit accounts
- Unique marketing opportunity
- Finances heavy machinery and equipment
- Attracts new borrowers
- We are your partner, not your competitor…you keep your clients
- The 504 Loan Program can be used multiple times
We are not your competitor…we’re your partner! As the largest 504 Lender in Illinois, we partner with hundreds of banks on commercial loans ranging from $200,000 to over $5 million. We’ll coordinate the entire 504 Loan process and work to ensure everything goes smoothly for your client.
Remember, SBA 504 Loans are offered in conjunction with local banks…not in competition with them.
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What are some key points for Lenders?
- Bank provides interim financing and sets the interim interest rate
- Bank’s term must be at least 10-years with Growth Corp’s 20- and 25-year bonds. And no less than 7 years with a 10-year bond
- Bank gets first lien position
- Advance is up to 95% of the appraised value on real estate – (5% variance)
- Bank is free to adjust the rate on the permanent loan at any time
- The economic life of the asset to be financed needs to meet or exceed the loan term.
- The size standards for businesses are: a tangible net worth of less than $15 million and profits (after taxes) of less than $5 million (including affiliates)
Can 504 Loans include soft costs?
Yes. Soft costs (e.g. appraisals, environmental, construction interest, closing costs, etc.) can be financed into the 504 loan, which allows small businesses to preserve working capital.
Who is eligible for the 504?
- Be operating a for-profit business
- Be organized as a corporation, sole proprietorship, partnership, LLC, etc.
- Be located in the U.S.
- Have a tangible net worth of less than $15 million and profit after taxes of less than $5 million (including affiliates)
- Have a successful track record and growth potential
- Occupy majority of project property (or owner-occupied property)
Projects that qualify must, according to SBA guidelines, promote economic development, which generally means the creation or retention of jobs. Overall, most small businesses will qualify!
What are the collateral requirements?
- The 504 loan is secured with a subordinate lien on all project assets.
- The 504 loan must have a security interest in all project assets.
- Existing liens are recognized for building expansions and renovations, but may also be refinanced with a 504.
- Personal guarantees of all principals owning more than 20% of the company are required.
- If the business is a start-up, or the asset being financed is considered single-purpose, or the credit is unusually risky, additional collateral may be required.
- Key man life insurance is typically required unless there is a strong management succession plan.
- Adequacy of collateral is a credit decision – additional collateral can be required by Growth Corp or SBA.
Now Available! Simultaneous Closings…
Growth Corp has expanded its service offering to be able to provide simultaneous closings between the bank’s financing and the 504 financing.
- Expedites funding
- Straight acquisitions or deft refi only
- 504 docs signed at bank closing
- Funding is the 7th of every month
A Sampling of Our 504 Projects
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Growth Corp is the top CDC in Illinois, the largest 504 Lender in Chicago and a top ten 504 Lender Nationwide, but we're still just a small, focused team working together every day to make the 504 process the best it can be.
We know that when it comes to 504 loans, it's about much more than just getting an approval. It's the ease-of-mind that comes from knowing Growth Corp's team has their finger on the pulse of the process from application to funding and even beyond into long-term servicing. It's knowing you will be informed every step of the way by the point-person responsible for overseeing the closing of your loan. It's knowing that, given Growth Corp's extremely low turn-over, you'll have the same experienced team members continuing to serve you year-after-year.
SBA recognized Growth Corp as an Accredited Lender after a thorough review of its policies, procedures and prior performance. The prestigious ALP status grants Growth Corp increased authority to process and close 504 loans, which results in an expedited process for both borrowers and lending partners. In addition, under the ALP Express Program, Growth Corp has been granted the authority to approve, authorize, close and service SBA 504 loans of $500,000 or less.
Quality, accuracy and quick turn-around times are just some of the reasons why Growth Corp is the top CDC in Illinois, the largest 504 Lender in Chicago and a top ten 504 Lender nationwide. But, remember, we're just a small team working together every day to make the 504 Loan process the best it can be.
SBA 504 LOANS
How Will You Grow Your Business?
877-BEST 504
www.GrowthCorp.com
A Non-Profit Organization Focused Exclusively on Small Businesses
