July 2020
Commercial Lending
SBA 504 Interest Rates Continue to Amaze and Benefit Growing and Expanding Small Businesses

Interest rates for Small Business Administration (SBA) 504 loans have been under 4% for the last 14 months and under 3% for the last 4 out of 5 months.  The rates have also decreased for 3 consecutive months and now sit under 2.5%.  These are fixed rates – no ARMs ever.

SBA 504 loan interest rates are at their lowest in historyWe encourage our commercial lending partners to share these astonishingly LOW SBA 504 loan fixed interest rates with their growing and expanding small business borrowers before they’re gone!

  The July 25-year effective interest rate for standard 504 loans is 2.410% and 2.412% for refinance loans.

  The July 20-year effective interest rate for standard 504 loans is 2.346% and 2.348% for refinance loans.

  The 10-year effective interest rate for standard 504 loans is 2.400% and 2.402% for refinance loans (set bimonthly).

These cheap rates create a timely and affordable opportunity for small business owners to refinance conventional mortgage debt or purchase commercial real estate and start building equity.

Preserving capital is as important now as it’s ever been.  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.

Small business owners who are considering refinancing or purchasing commercial real estate need to act now given the current unprecedented low rate environment.

Understanding the 504 Loan Interest Rate

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