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NADCO Announces 25 YR Debenture Possible . . .

A marketing division of SCTDD and SCTBDC

NADCO Announces 25 YR Debenture possible in

Second Quarter of Federal Fiscal Year 2018

Something different is coming to the SBA 504


 Well, it is not quite as stark as the example above, but it is an interesting option for businesses that seek financing from the SBA 504 Program. In the future, applicants could opt for an option to improve their cash flow by extending the terms of their financing out to 25 years.

Speaking this week at the NADCO Spring Summit in Washington, D.C., SBA Administrator Linda McMahon affirmed SBA’s support for a twenty-five year 504 debenture. The longer term debenture could be offered as soon as FY2018. The Administrator pointed out the benefits of long term fixed rate financing in a rising rate environment, which do seem to make a persuasive argument for small business borrowers.


When combined with reporting in the financial media on the possibility of coming pressures on depository funding for mid-sized banks (1) and the renaissance of a secondary market for Third Party Lender first position loans (2); it would seem to be a persuasive argument for small business lenders as well.

We welcome the opportunity to earn your business.

(1) Bloomberg, 8 May 2017; “JPMorgan Tells Banks to Partner up as Deposit Drain Looms”
(2) The RMA Journal, May 2017; “Secondary-Market Opportunities in SBA 504 Lending” Click Here for Link to RMA Article



South Central Tennessee Development
101 Sam Watkins Blvd.
Mount Pleasant, TN 38474
Office (931) 379-2918
Fax (931) 379-2640

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