{meta_title}

SBA 504 Loan Interest Rates

close interest rates

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.

 

Looking for some help? Call 800.504.LOAN or Email Us

Interest Rates

Servicing the States of Alabama, Florida, and Georgia.

Lending News Archives

SBA 504 Q&A: Subordination to Non-Project Loan Proceeds (7a) Loan)

Jan 2016

Q: Will the Small Business Administration (SBA) subordinate to the refinance of a 504 first mortgage loan if it includes 7(a) loan proceeds?

A: No. SBA Procedural Notice 5000-83, which addresses servicing requests pertaining to the 504 Loan Program, clearly delineates the two SBA programs and specifically addresses the intended use of proceeds for each.

The Notice states that because of the economic development emphasis associated with the 504 loan as well as the specific risks taken on by the SBA due to its lien position on the 504 loan in contrast to the its lien position on a 7(a) loan, collateral taken to support the loan is generally limited to the project assets financed and other related fixed assets.

In contrast, the 7(a) Guaranty Loan Program often finances both the short and long-term needs of small businesses and these needs can be rolled into the one 7(a) loan.

The Notice further states that the SBA will only consider a subordination of its lien position on project collateral to a new loan or an increase in a senior lien when the proceeds will be:

1) Applied to improvements to the project collateral; or

2) Used to purchase additional long-term fixed assets necessary for the operation of the small business.

Documentation that will be required as a part of the subordination request is:

1) Written consent from all borrowers/guarantors to the action, outlining what is being requested.

2) Updated financial information.

3) Borrower executed commitment letter from the proposed lender outlining terms and conditions of the new loan.

Documentation that may be required as a part of the subordination request is:

1) Updated appraisal to substantiate value of project collateral.

2) Limited title search.

3) Updated environmental due diligence.

In addition, as with all servicing actions, it is important to note that when considering any request for subordination, the loan should be seasoned as defined in the SBA's Servicing SOP; the project being proposed must be eligible under the 504 Loan Program guidelines; the borrower must continue to exhibit adequate repayment ability; and the project must also continue to exhibit collateral coverage satisfactory to the SBA.

If you have a question you'd like our SBA 504 loan experts to answer, email us atinfo@ffcfc.comor call 850.681.3601 or toll-free at 888.320.5504.

Archived