- Loan Programs
- Lending News
- Our Story
- Contact Us
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
Aug 2012
The Small Business Administration (SBA) temporary 504 Debt Refinancing Program offered through Florida First Capital is set to expire on Sept. 27, 2012. Lenders are urged to contact us ASAP so we can complete and submit refinance applications to the SBA for authorization before the expiration date.
While efforts are underway to convince Congress to extend the 504 Debt Refinancing Program, there are no guarantees. Congress is currently on recess and will not get back to work until the second week of September. With the election coming up, even when Congress returns, focus is expected to be on campaigns rather than passage of this needed measure.
It is also possible that the refinance program would expire on Sept. 27, but Congress could pass an extension after the election, during a lame duck session. Thus, the program would stop and then start again within weeks.
(Sign online petition to extend SBA 504 Debt Refinancing Program)
It is not yet known how the SBA will handle refinance loan packages submitted for authorization in the final days of the program, but lenders should expect that if the package is not approved by the last day, it might be held by the SBA pending passage of a new program extension. Again, this could come after the November election. Alternatively, the SBA might simply return all unapproved late loan packages, indicating that the program has expired.
We will keep you advised as the SBA develops its final plans for wind-down of the refinancing program.
504 Refinancing Program Overview
The 504 Debt Refinancing Program offered through Florida First Capital allows small businesses to take advantage of long-term, low fixed interest rate loans to refinance their high interest or maturing real estate debt or existing debt on capital assets.
Borrowers also can use excess equity in the asset being refinanced to finance eligible business expenses to support business operations for a period of 18 months under this temporary program.
Refi Qualification Criteria:
• Up to 90% of the current appraised property value may be refinanced, plus eligible refinancing costs.
• At least 85% of the original loan was used to acquire, construct or improve fixed assets.
• The small business concern must have been in business for two years prior to submission of the refinance application.
• Debt must have been incurred not less than two years prior to the date the refinance application is received by the SBA.
• Loans being refinanced must have been current for the past year with no payment being deferred or past due for more than 30 days.
• An independent appraisal of the fair market value of the project assets and any additional assets offered as additional collateral must be provided.
Refi Loan Structure:
• Total of first and second mortgages on refinance deals will be 90%; the structure will vary depending upon the transaction.
• In addition to a cash contribution, the borrower's 10% contribution may be satisfied by its equity in the eligible fixed asset (the 504 project) serving as collateral for the refinancing project or by the equity in any other fixed assets that are acceptable to the SBA as collateral.
Refi Program Restrictions:
• Existing 504 projects and government guaranteed loans are not eligible.
• Ineligible expenses are the acquisition of a business or another property, financing partner buy-outs, paying off shareholder debt or owner's personal debt.
Experience Counts
With more than 60 refinance projects under our belt, Florida First Capital has led the way among certified development companies in Florida to structure, process and obtain SBA authorizations for 504 debt refinancing loans since the program's inception.
Let's talk refinance before time runs out. If you have clients that are good candidates for refinancing their commercial debt, contact us today.
For more information about SBA 504 loans in Florida, contact Florida First Capital, Florida's original statewide SBA Certified Development Company (CDC), by visiting www.ffcfc.com, emailing at info@ffcfc.com or calling 888.320.5504.