Empowering Black Business Growth

Pandemic-Era Insights: A Dive into SBA 504 Loan Program Data

Between 2020 and 2022, at the height of the pandemic, the SBA 504 loan program saw record numbers of small businesses buying their buildings to facilitate business growth and maximize the number of benefits.

However, for Black business owners, the percentage of 504 loans remained less than 3%. Black business owners averaged just 2.3% of all 504 loans made over the six-year period from 2018-2023. 

This data contrasts with the Black Business Owner growth data, which according to a National Today article on Black Business Month, 10% of all American businesses are Black-owned, and Black-owned businesses make up 30% of American minority-owned businesses.

AmPac Promotes SBA 504 Loans for Black Entrepreneurs

Seek the benefits of commercial real estate ownership.

In recognition of National Black Business Month, established in 2004 to highlight and empower Black business owners, AmPac urges Black business owners to seek the stabilizing benefits of commercial real estate ownership. The SBA 504 loan makes ownership possible because of the low down payment requirement, as little as 10% of the loan amount, and the fixed interest rates, which allow business owners to plan their monthly fixed costs over time. Throughout the State of California, AmPac can assist businesses with owner-occupied commercial real estate down payment assistance for up to 50% of the minimum down payment, not to exceed $100,000.

SBA’s 504 Loan Program: Stability and Growth for Small Businesses

The SBA, celebrating 70 years of servicing small businesses, established the 504 Loan program to provide fixed-rate, long-term financing for fixed assets that promote business growth and job creation. The 504 loans may be used to purchase or refinance owner-occupied commercial real estate, equipment, or tenant improvements for small businesses. Financing commercial real estate and equipment for small businesses provides stability from rising lease rates and the potential to be displaced. Financing also provides the certainty of monthly payments to plan costs over time. Owning commercial real estate enables small businesses to have options in succession planning and exit strategies.

For more information, visit ampac.com or call a small business champion at 909-915-1706.