SBA 504 Program Reaches Lending Cap

SBA 504 funding will reset on October 1, 2021


  • SBA is still processing 504 loan applications
  • SBA is still sending notice of loan approval (pending new allocation of allocation of 504 funds 10/1/21)
  • SBA 504 funding is still available for certain refinance projects

Source: NADCO (National Association of Development Companies)

The Small Business Administration (SBA) has notified TMC Financing that the regular 504 loan program, including 504 debt refi with expansion, has reached its congressionally authorized cap of $7.5 billion.

As NADCO and SBA have previously communicated, the Sacramento Loan Processing Center (SLPC) will continue accepting, processing, and decisioning loan applications and communicating those decisions to TMC FINANCING.

However, SLPC will not be able to issue a loan number and authorization until funding authority is reset on October 1, 2021, unless Congress acts sooner to address this temporary pause. SLPC has activate a funding queue for all decisioned loans. It is critical to appropriately manage expectations moving forward.

As a reminder, the 504 debt refinance without expansion loan program operates with a separate $7.5 billion authorization cap which still has ample funding available. SLPC will continue processing and approving 504 debt refinance without expansion applications without interruption.

TMC Financing will continue working with members of Congress and SBA to provide more authority for the regular 504 loan program. Please contact your members of Congress now to share the impact of your CDC in their communities and advocate with them to support additional funding for the regular 504 loan program.

To assist you, NADCO staff has created a template you may use to contact your members, which you can find HERE. NADCO will send additional materials later this week to help advocate with members of Congress.

Please contact Renee Bender at with any questions or assistance you may need contacting your members.

This has been a record-setting year for the 504 loan program. TMC Financing and their lending partners are tirelessly working to support economic recovery in local communities across the country by providing small businesses and entrepreneurs with long term, fixed rate capital to rebuild and grow.