SBA 504 Loan Interest Rates
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.
The Small Business Administration (SBA) is increasing size standards for firms in four North American Industry Classification System (NAICS) Sectors and one Subsector: Agriculture, Forestry, Fishing and Hunting, Finance and Insurance, Management of Companies and Enterprises, Arts, Entertainment, and Recreation and Support Services for Mining.
Size standards define the maximum size a firm can be and still be considered a small business. The revised standards reflect changes in marketplace conditions and public comments that the SBA received to the proposed rules. The new size standards will make more small businesses eligible for SBA loan programs.
The SBA increased size standards for businesses in 11 industries in the Agriculture, Forestry, Fishing and Hunting Sector. More than 7,800 additional firms will qualify as small under these new size standards and become eligible for SBA loans.
The SBA also increased size standards for 36 industries for firms in the Finance and Insurance Sector and two industries in the Management of Companies and Enterprises Sector. The SBA changed the basis for measuring size from assets to annual revenues for the International Trade Financing industry and deleted the Real Estate Investment Trusts from its table of size standards. More than 7,400 additional businesses will qualify as small under the new size standards and become eligible for SBA loans.
Size standards for 17 industries were also increased for firms in the Arts, Entertainment and Recreation Sector. More than 1,450 additional firms will qualify as small under these new size standards and become eligible for SBA loans.
The SBA also increased size standards for three of the four industries for firms in the Support Activities for Mining Subsector within the Mining, Quarrying and Oil and Gas Extraction Sector (Sector 21). Subsector 213 is the only subsector within Sector 21 which has revenues-based size standards. The remaining industries within Sector 21 have employee-based size standards, which the SBA will review in the near future. More than 475 additional firms will qualify as small under the new size standards and become eligible for SBA loans.
The final rules became effective July 22, 2013. To review the rules and public comments, go here. Each sector has a separate RIN number:
• Agriculture, Forestry, Fishing and Hunting - (RIN 3245-AG43).
• Finance and Insurance & Management of Companies and Enterprises - (RIN 3245-AG45).
• Arts, Entertainment, and Recreation - (RIN 3245 AG36).
• Support Activities for Mining - (RIN 3245-AG44).
The SBA is reviewing all size standards, and takes into account the structural characteristics of individual industries, including average firm size, the degree of competition, and federal government contracting trends. This ensures that small business size definitions reflect current economic conditions in those industries. Under the Small Business Jobs Act of 2010, the SBA will continue its comprehensive review of all size standards for the next several years.
For more information about SBA 504 loans in Florida, contact Florida First Capital, Florida's original statewide SBA Certified Development Company (CDC). Email: info@ffcfc.com. Phone: 850.681.3601 or toll-free at 888.320.5504.
