SBA 504 Loan Program Hits Lending Cap
Earlier this week, GLCF received the news that the 504 loan program, including 504 debt refinance with expansion, has reached its congressionally authorized cap of $7.5 billion. Even though this program operates at zero subsidy with no expense to taxpayers, it takes an act of Congress to allocate or reallocate more funds to the program. With the new fiscal year not resetting for a few weeks (10/1), that leaves a funding gap.
So what does this mean and where do we go from here?
SBA will continue accepting, processing, and decisioning loan applications and communicating those decisions to GLCF once they are made. However, SBA will not be able to issue a loan number and authorization until funding authority is reset on October 1, unless Congress acts sooner to address this temporary pause.
As a reminder, the 504 debt refinance without expansion loan program operates with a separate $7.5 billion authorization cap which still has ample funds available. SBA will continue processing and approving 504 debt refinance without expansion applications without interruption.
GLCF has been working diligently to get as many loans authorized as possible while fee waivers and payment relief incentives have been in place and though the lending cap has been reached, the program's main benefits such as the low down payment and historically low fixed interest rates remain.
If you have questions on a specific project or would like help structuring a new loan, please do not hesitate to reach out to one of our loan officers.
