Obama Supports 150% Increase in Maximum 504 Loan -- to $ 5 Million

Oct. 21, 2009 -- President Obama today announced his support of legislation that will increase the cap on Small Business Administration (SBA) 504 loans to $5 million for standard small businesses and $5.5 million for small manufacturing businesses. 504 loan caps are currently set at $1.5 million ($2 million if a public policy is met) and $4 million, respectively.

The shift to $5 million for standard small business borrowers would support a total project of $12.5 million, and to $5.5 million for small manufacturers would support a total project of $13.75 million, according to the White House and the SBA.

While the legislation is pending Congressional approval, this is huge news for small business owners looking for financing who were unable to obtain a 504 loan due to $1.5 million cap. In many cases, these small businesses had already used a 504 loan, they were ready to expand, but were denied the chance to borrow again through the SBA due to the $1.5 million limit.

SBA data shows an increase in the demand for the larger loans currently available. In the 504 program, the percentage of loans for more than $1.5 million has grown, from 15% of total dollars approved in 2005 to 28% in 2009.

Obama made his announcement at the offices of Metropolitan Archives, a 504 loan recipient in Hyattsville, Maryland. With this kind of support from the president for the 504 industry, it is certainly hoped the legislation will be fast tracked and put into place by the SBA as soon as possible.

The 504 loan program is reserved exclusively for the purchase, construction or renovation of owner-occupied commercial real estate and/or the acquisition of industrial equipment or other fixed assets. It offers below market, fixed interest rates with long amortization terms (up to 20 years).

Over 115,000 savvy, small business owners have taken advantage of 504 loans to grow their businesses since the program began in 1986. In fact, the 504 loan program has funded over $45 billion in loans to growing small businesses over the past 23 years.

Click here for the White House release.

Click here for President Obama's speech transcript.

Commercial Capital Limited
SBA Financing Program

We here at Commercial Capital Limited are experts in Small Business Administration 504 loans and are able to assist all our clients in getting SBA loans closed faster, easier and at lower costs. Don’t hesitate to call or email Commercial Capital Limitied to see how we might be able to assist you and your business in receiving some of the additional Stimulus Bill money that has been made available thru the Small Business Administration.!

Give us a call at: 863-298-8900 or 813-833-3132
Or visit: http://commerciallendingpros.com/ and fill out a Quick Loan Pre-Qual form to get a fast response to your loan scenario!

Florida 504 Loan Volume Nearly Doubles

The 20-year effective interest rate on Small Business Administration (SBA) 504 loans declined to 5.24% in July – the lowest in the program’s history.

In April, the rate was 5.25%, which was the lowest at the time but July edged it out for the new record.

The new low rate, coupled with recent Stimulus enhancements to the program (the elimination of most program fees and limited debt refinancing), is a rare piece of good news for small businesses suffering from the nationwide reduction in credit availability.

“With the difficulties small businesses are having in today’s economy, the recent Federal incentives and a new all-time low interest rate create a unique opportunity for small businesses to buy or enhance their facilities,” said Todd Kocourek, president & CEO of Florida First Capital.

For more information on Commercial Capital Limited and its 504 loan program, visit www.commerciallendingpros.com, email us at loans@commerciallendingpros.com or call 863.298.8900 or 813-833-3132.