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SBA 504 Loan Interest Rates
May 2022
25-Year Fixed Rate Standard:
5.119%
25-Year Fixed Rate Refinance:
5.133%
20-Year Fixed Rate Standard:
5.061%
20-Year Fixed Rate Refinance:
5.075%
10-Year Fixed Rate Standard:
4.931%
10-Year Fixed Rate Refinance:
4.948%
Full-term fixed interest rates shown; includes all servicing fees
Sep 2021
The Small Business Administration (SBA) 504 Debt Refinancing Program WITHOUT expansion provides a tremendous opportunity for small business owners to reduce their monthly debt payments and access equity trapped in commercial real estate holdings by refinancing conventional real estate loans. Borrowers may also refinance eligible business operating expenses (cash-out option).
Note: the 504 Debt Refinancing Program without expansion is not impacted by the temporary shutdown of the regular SBA 504 Loan Program, as it operates under a separate authorization lending cap.
The program was recently expanded under section 328 of the Economic Aid Act, which significantly extended its usefulness to assist small business recovery and growth.
For borrowers that refinance only long-term fixed asset debt (no cash out), the maximum LTV is 90% of the fair market value of the eligible fixed asset(s).
Borrowers can also refinance eligible business operating expenses (cash-out option); however, a maximum 85% LTV applies and the business operating expenses portion of the project may not exceed 20% of the value of the eligible fixed asset(s) securing the qualified debt.
Debt is not included as an eligible business expense; however, debt incurred with a credit card or a business line of credit may be included.
Refinance of Existing Government Guaranteed Debt
SBA 504 refinance projects may include federally-guaranteed debt under the following conditions:
Qualification Criteria/Down Payment
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 Georgia, contact a Florida First Capital Loan Officer or email us at info@ffcfc.com. Phone: 850.681.3601 or toll-free at 888.320.5504.