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SBA 504 Loan Interest Rates

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June 2025

25-Year Fixed Rate Standard:
6.376%

25-Year Fixed Rate Refinance:
6.405%

20-Year Fixed Rate Standard:
6.395%

20-Year Fixed Rate Refinance:
6.434%

Estimated 10-Year Fixed Rate Standard:
6.204%

Estimated 10-Year Fixed Rate Refinance:
6.252%

Official monthly SBA 504 effective interest rate tables can be found at Eagle Compliance LLC. 25- and 20-year term loans fund every month; 10-year term loans fund every other month. Effective interest rates are inclusive of servicing fees, which are subject to credit risk of the applicant.

 

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Interest Rates

Servicing the States of Alabama, Florida, and Georgia.

Lending News Archives

25-Year Term Option for SBA 504 Loans Reaches $1 Billion Milestone

Jun 2019

Since its launch last July, the 25-year term option for Small Business Administration (SBA) 504 loans hit a milestone of over $1 billion in fundings this month.

Spread over the longer term, small business borrowers in June took advantage of the lowest ever 25-year full-term effective interest rate of 4.09% (Prime -140 bps). Over the course of the last year, the 25-year effective rate was approximately 4.96% on average, or just 9 basis points above the 20-year fixed rate.

The 25-year option, in addition to 10- and 20-year terms, reflects a face value of $1.04 billion in total lending dollars to date. The lending program marked its first funding in July of 2018 and in its final month of the first-year launch, June 2019 figures indicate a total of 1,289 fixed rate 504 loans to small businesses throughout the country.

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.

Under a typical 504 loan structure, a commercial lending partner provides financing for 50% of the 504 loan and takes a first lien position; Florida First Capital/SBA provides 40% of the project financing and takes a second lien position; and the borrower provides a down payment of just 10% in most cases.

504 loans 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/First Capital Finance Loan Officer or email us at info@ffcfc.com. Phone: 850.681.3601 or toll-free at 800.504.LOAN.

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