We received good news last week when our trade association, NADCO, announced that the SBA 504 Program is returning to zero subsidy. (Click here to read the full press release.) What exactly does that mean?
The program is self-funded through fees that borrowers and first lien lenders pay into the program. This is excellent news because it provides stability to the program and allows small business owners to secure long-term, fixed-rate financing for their real estate and equipment needs.
The program has historically been zero subsidy, but as a result of the Great Recession, the program did require a subsidy from 2012 to 2015. We are proud to have played a role in helping the program return to zero subsidy.