May 2020
Commercial Lending
May 2020 SBA 504 Loan Interest Rates Continue to Break Historical Records

The Small Business Administration (SBA) 504 Loan Program continues to fund at unsurpassed low levels, enabling small business owners to lock in fixed interest rates currently under 3%.  This month makes 1 year with 504 interest rates under 4% and 4 successive months with rates at or under 3%.

SBA 504 Loan Interest Rate Report  The May 25-year effective interest rate for standard 504 loans is 2.761% and 2.763% for refinance loans.

  The 20-year effective interest rate for standard 504 loans is 2.688% and 2.689% for refinance loans.

  The 10-year effective interest rate for standard 504 loans is 2.654% and 2.656% for refinance loans (set bimonthly).

Understanding the 504 Loan Interest Rate

The SBA 504 Loan Program provides up to 90% financing at below-market, fixed interest rates and long amortization terms up to 25 years for the purchase of major fixed assets, such as owner-occupied commercial real estate, renovations, new construction, energy efficient “green” initiatives and/or fixed heavy duty machinery and equipment, as well as the refinance of commercial mortgage and other business debt with or without a cash-out option.

504 loans are paired with private-sector commercial loans and provide up to $5 million of aggregate SBA eligibility on standard 504 projects; up to $5.5 million per 504 energy efficient green project not exceed $16.5 million in the aggregate; and up to $5.5 million per eligible small manufacturing project with no limit on total SBA dollars available.  These are SBA 2nd mortgage loan portions only; there is no limit on overall project dollar size.

For more information about SBA 504 loans in Alabama, Florida or South Georgia, contact a Florida First Capital Loan Officer or email us at  Phone: 850.681.3601 or toll-free at 800.504.LOAN.