Shared by MBFC on behalf of NADCO, 9/7/2021
The U.S. SBA has notified NADCO that the regular 504 loan program, including 504 debt refi with expansion, has reached its congressionally authorized cap of $7.5 billion. As NADCO and SBA have previously communicated, the Sacramento Loan Processing Center (SLPC) will continue accepting, processing, and decisioning loan applications and communicating those decisions to the CDC. However, SLPC will not be able to issue a loan number and authorization until funding authority is reset on October 1, 2021, unless Congress acts sooner to address this temporary pause. SLPC has activated a funding queue for all loans with a decision. It is critical to appropriately manage expectations moving forward.
As a reminder, the 504 debt refinance without expansion loan program operates with a separate $7.5 billion authorization cap which still has ample funding available. SLPC will continue processing and approving 504 debt refinance without expansion applications without interruption.
NADCO has been and will continue working with members of Congress and SBA to provide more authority for the regular 504 loan program. Please contact your members of Congress now to share the impact of your CDC in their communities and advocate with them to support additional funding for the regular 504 loan program. To assist you, NADCO staff has created a template you may use, see link below.
This has been a record-setting year for the 504 loan program.
CDCs and their lending partners are tirelessly working to support economic recovery in local communities across the country by providing small businesses and entrepreneurs with long term, fixed rate capital to rebuild and grow.