Who is Eligible?
- Must be a for-profit business. Generally available to individual business owners or multiple owners partnering on a project
- The business and any affiliate companies must have a net worth no greater than $15 million.
- The average net profit of the business cannot be more than $5 million in average after taxes in the last two years.
- The business must create and/or retain jobs and/or meet one of the following SBA Public Policy goals:
- Expansion of an export business (at least 10% of last years sales must be from export sales).
- Expansion of a minority owned business (at least 51% ethnic minority interest).
- Women owned.
- Veteran owned.
- Other SBA-approved public policy goals.
What are the occupancy requirements for the business?
- 51% if acquiring an existing facility (49% can be permanently leased out).
- 60% for a new construction project with the potential that the business will occupy some additional space within three years, and a total of 80% within ten years. The balance of the building (20%) can be permanently leased out.
How much of an Equity contribution is required for an SBA 504 Loan?
- Commonly 10%· If the entity is considered a new business or the property is determined to be a Special Purpose Property, an additional 5% equity is required.
Types of Businesses Served by PYMES:
- Medical Doctors Practices
- Manufacturers
- Auto repair shops
- Attorneys Practices
- Car washes
- Childcare centers
- Dental offices
- Distribution centers
- Hair salons
- Hotels and Small Inns
- IT companies
- Pharmaceutical Companies
- Restaurants and food service companies
- Retail and wholesale companies
- Veterinary offices
- Warehouses
Are there any pre-payment penalties?
The SBA 504 Debenture has a re-purchase premium (RP) during the first ten years of the 20-year Debenture period.
This is a declining premium (10/9/8/7/6/5/4/3/2/1) that is calculated based on the year of the loan, remaining balance (B) and interest rate (I).
For example, if a Debenture is repurchased in year 5, the repurchase premium would be as follows: RP = B(I x .60). A 10-year Debenture has a re-purchase premium during the first five years (10/8/6/2).
Past Interest Rates
Issue Date |
Amount of Debentures ($0) |
Debenture Rate (%) |
Note Rate (%) |
Comparable Treasury Market Rate (%) |
Spread Over Treasury Rate (%) |
10-Year Debentures |
|||||
July 09 | 20,950 | 3.19 | 3.3091 | 2.38 | 0.81 |
Sept 09 | 17,752 | 3.08 | 3.1956 | 2.35 | 0.74 |
Nov 09 | 13,741 | 2.98 | 3.0918 | 2.30 | 0.68 |
Jan 10 | 18,589 | 3.17 | 3.2882 | 2.58 | 0.59 |
Mar 10 | 19,812 | 2.86 | 2.9682 | 2.34 | 0.52 |
May 10 | 14,869 | 2.87 | 2.9782 | 2.69 | 0.49 |
July 10 | 22,891 | 2.44 | 2.5335 | 1.81 | 0.63 |
Sept 10 | 28,385 | 1.97 | 2.0467 | 1.44 | 0.53 |
Nov 10 | 33,855 | 1.81 | 1.8810 | 1.16 | 0.65 |
Jan 11 | 24,427 | 2.45 | 2.5437 | 1.98 | 0.47 |
Mar 11 | 29,623 | 2.63 | 2.7302 | 2.21 | 0.42 |
May 11 | 34,930 | 2.34 | 2.4297 | 1.96 | 0.39 |
July 11 | 27,080 | 2.25 | 2.3367 | 1.72 | 0.53 |
Sept 11 | 28,414 | 1.53 | 1.5905 | 0.87 | 0.66 |
Nov 11 | 26,665 | 1.52 | 1.5802 | 0.88 | 0.64 |
Jan 12 | 19,966 | 1.58 | 1.6422 | 0.88 | 0.70 |
20-Year Debentures |
|||||
Mar 10 | 270,999 | 4.19 | 4.25491 | 3.70 | 0.49 |
Apr 10 | 236,577 | 4.36 | 4.42660 | 3.95 | 0.41 |
May 10 | 292,258 | 4.11 | 4.17388 | 3.62 | 0.49 |
June 10 | 294,205 | 3.88 | 3.94148 | 3.17 | 0.71 |
July 10 | 269,725 | 3.80 | 3.86050 | 2.98 | 0.82 |
Aug 10 | 294,048 | 3.52 | 3.57715 | 2.90 | 0.62 |
Sept 10 | 318,807 | 3.21 | 3.26344 | 2.65 | 0.57 |
Oct 10 | 265,250 | 3.11 | 3.16206 | 2.47 | 0.64 |
Nov 10 | 308,534 | 3.25 | 3.30397 | 2.58 | 0.67 |
Dec 10 | 302,536 | 3.72 | 3.77960 | 3.07 | 0.65 |
Jan 11 | 263,092 | 3.89 | 3.95146 | 3.33 | 0.56 |
Feb 11 | 297,918 | 4.22 | 4.28527 | 3.66 | 0.56 |
Mar 11 | 285,694 | 4.09 | 4.15380 | 3.52 | 0.57 |
Apr 11 | 251,557 | 4.05 | 4.11327 | 3.44 | 0.61 |
May 11 | 279,709 | 3.79 | 3.85029 | 3.26 | 0.53 |
June 11 | 320,853 | 3.67 | 3.72902 | 3.04 | 0.62 |
July 11 | 252,147 | 3.74 | 3.79979 | 3.14 | 0.60 |
Aug 11 | 334,006 | 3.29 | 3.34451 | 2.38 | 0.92 |
Sept 11 | 312,077 | 2.85 | 2.89868 | 1.94 | 0.91 |
Oct 11 | 319,054 | 2.76 | 2.80737 | 1.76 | 1.00 |
Nov 11 | 335,597 | 2.87 | 2.91896 | 2.01 | 0.86 |
Dec 11 | 318,625 | 2.87 | 2.91892 | 2.08 | 0.79 |
Jan 12 | 302,257 | 2.76 | 2.80737 | 1.95 | 0.81 |
Feb 12 | 374,824 | 2.63 | 2.67564 | 1.95 | 0.68 |