NADCO Congratulates All Parties Involved on the First Funding for the 25-Year Fixed-Rate 504 Loan Product

WASHINGTON, July 11, 2018 /PRNewswire-USNewswire/ -- The National Association of Development Companies (NADCO) is thrilled to announce that today the first 25-year 504 loan pool funded. 

This marks a historic day for the 504 Loan Program and signifies the culmination of a significant amount of hard work on the part of many critical to the debenture funding process including the Small Business Administration (SBA), Eagle Compliance, LLC, Bank of America Merrill Lynch, Credit Suisse, Morgan, Lewis & Bockius LLP, BNY Mellon, and the Central Servicing Agent (CSA). These entities worked closely with the industry and one another to ensure a smooth launch and a viable product.

"Every group and person involved was critical to the 25-Year Loan Product coming to market," said Barbara A. Vohryzek, NADCO CEO. "We are very excited that today the hard work of this team of professionals is coming to fruition with the funding of the first $27,536,000 in 25-year debentures under the 504 Program. The legacy of growth and prosperity that is sure to result from this new product would not be possible without the efforts of many dedicated people."

This collaboration began when the SBA responded positively when presented with the 25-year concept from NADCO leadership and Board of Directors. As a result, SBA Administrator McMahon's approval to go forward with the 25-year debenture was one of her first actions after her swearing-in on February 14, 2017.

This loan allows small businesses across the country to receive a 25-year fixed rate loan for asset purchases such as real estate.  With this financial tool, borrowers can securely plan their financial futures while growing jobs and the economy.

The agency began accepting 25-Year 504 loan applications in April of 2018.

SOURCE National Association of Development Companies (NADCO)

Related Links

http://www.nadco.org