August 2020
Commercial Lending
SBA 504 Interest Rates Go Even Lower and Remain Hot, Hot, Hot!!!

Interest rates for Small Business Administration (SBA) 504 loans have now been under 4% for the last 15 months and under 3% for the last 5 out of 6 months.  These fixed rates (no ARMs ever) have also declined for 4 consecutive months and firmly stand under 2.5%.

SBA 504 Rates Are HOT HOT HOTHow low will the rates go?  Will we see rates under 2%?!?  One thing we can say for certain is: small business owners that are buying commercial property or refinancing existing commercial mortgage debt via the SBA 504 Loan Program today are getting a pretty great deal on top of building equity.  We encourage our commercial lending partners to share these super cheap 504 interest rates with their small business borrowers before they are gone!

  The August 25-year effective interest rate for standard 504 loans is 2.269% and 2.271% for refinance loans.

  The August 20-year effective interest rate for standard 504 loans is 2.214% and 2.215% for refinance loans.

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

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.

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  Phone: 850.681.3601 or toll-free at 800.504.LOAN.