Below market fixed rate. The rate on the SBA 504 portion is set when the SBA sells the debenture to fund the loan. Debenture sales occur monthly for 20-year loans and bi-monthly for 10-year loans. The rate is then fixed for the term of the loan. SBA 504 Debentures are government guaranteed securities. The effective rate (APR) will include program fees and a loan loss subsidy.
Click here to use our Online Interest Calculator to estimate costs related to an SBA loan.
For information on historical rates please visit the National Association of Development Companies (NADCO) web site.