The First Funding of the 25-Year
Debenture for the SBA 504 Loan Program

On July 5th, the SBA 504 program priced its first 25-year debenture, giving small business borrowers a much sought-after option to better manage their debt service. Being able to secure longer-term, fixed rate funding in a rising rate environment permits borrowers to choose terms that best fit their needs.

The sale of $27,536,000 debentures reflects the demand that Certified Development Companies have seen from borrowers, with 23 loans being priced at a rate of 3.68%, +85 bps to benchmark Treasuries. The median size of 25 year amortization loans was $822,000 compared to the $453,000 median size of 20 year amortization loans.

The funding permitted these small businesses to secure an ongoing Effective Rate of 5.32%, just 32 bps above Prime Rate.

It has been reported that as much as $200 million of 25-year loans have already been approved as of mid-June, so it is expected that this loan option will see continued growth.

If you have any questions about the 25-Year Debenture for the SBA 504 Loan Program, contact NWBDA today!

SBA 504 Effective Rates for July 2018

25-year – 5.32% / 5.36% Refi
20-year – 5.26% / 5.31% Refi
10-year – 5.30% / 5.36% Refi

July 2018
Issue 14

Story from
Compliance, LLC

Business Consulting


Business Development Officers

Eastern Washington/
Northern Idaho
Evan Heriot

Central Washington
Lisa Vincent

Western Washington
Elizabeth Rusnak

Elizabeth Stevens

Mark Beppler

Southwestern Washington/
North Oregon
Jim Bight

Mike Miller

NWBDA’s new website has launched!

A better way to contact us and keep up on SBA 504 news!

To explore our website, go to:


NWBDA is now in Partnership with SCORE Spokane!

Are you in need of small business
council or mentoring? Go to:
(509) 458-8555
(800) 540-1748 (Toll Free)


In the month of
June, NWBDA helped
create 15 new jobs in the
local communities!

June’s Loan

NWBDA approved 7 new projects for the total amount of $13,382,153.80

Did you know?

In 2016, SCORE mentors helped start 54,072 new businesses and create 78,691 new jobs!

June’s Loan

NWBDA funded 3 new
projects for the total amount of $2,702,760.00