SBA 504 Loan Rates
Current SBA 504 Loan Rates for September 2024
10 Year:
6.46%
20 Year:
6.35%
25 Year:
6.28%
Refi 10 Year:
6.50%
Refi 20 Year:
6.38%
Refi 25 Year:
6.31%
The SBA 504 Loan program offers small businesses long-term, fixed-rate financing to purchase commercial real estate, machinery, and equipment. The interest rates on SBA 504 loans are among the most competitive available for small businesses, typically lower than conventional financing options. These rates are determined by the bond market and are set when the debenture (the SBA’s portion of the loan) is sold to investors.
Key Points About SBA 504 Loan Rates:
Fixed Rates:
One of the most attractive features of SBA 504 loans is the fixed interest rate. This means that the interest rate does not fluctuate over the life of the loan, providing stability and predictability for the borrower.
Market-Determined Rates:
The interest rates on SBA 504 loans are tied to the sale of debentures in the bond market. These rates are generally set at an increment above the current market rate for U.S. Treasury issues. The exact rate includes a base rate plus various fees, which cover the costs of the program and services provided by the Certified Development Company (CDC) like NSDC.
Typical Rate Structure:
SBA 504 loans are structured with a blend of financing: typically, 50% from a conventional lender, 40% from the SBA (via the CDC), and 10% from the borrower. The 40% SBA portion is the part that benefits from the fixed interest rate.
Rates are generally offered for 10, 20, and 25-year terms. The interest rates for 20 and 25-year debentures are common for real estate purchases, while the 10-year term is often used for equipment financing.
SBA 504 Current Rates & History (2019-2024)
| 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
| January | 6.36% | 6.28% | 3.07% | 2.65% | 3.63% | 4.751% |
| February | 6.49% | 5.98% | 3.45% | 2.75% | 3.38% | 4.641% |
| March | 6.36% | 6.33% | 3.77% | 2.99% | 2.80% | 4.581% |
| April | 6.76% | 5.95% | 4.62% | 3.02% | 2.95% | 4.360% |
| May | 6.65% | 6.07% | 5.06% | 2.84% | 2.68% | 4.260% |
| June | 6.44% | 6.38% | 5.13% | 2.76% | 2.52% | 3.978% |
| July | 6.27% | 6.63% | 5.05% | 2.69% | 2.34% | 3.908% |
| August | 6.11% | 6.60% | 4.89% | 2.74% | 2.21% | 3.526% |
| September | 5.83% | 6.86% | 5.34% | 2.86% | 2.36% | 3.355% |
| October | 6.10% | 7.18% | 6.36% | 2.77% | 2.39% | 3.398% |
| November | 6.35% | 7.02% | 6.45% | 2.77% | 2.52% | 3.679% |
| December | 6.59% | 6.03% | 2.88% | 2.58% | 3.579% |
SBA 504 Historical Interest Rates
SBA 504 rates have historically been favorable, often ranging between 3% to 6%, depending on market conditions. As of recent years, rates have been on the lower end due to favorable economic conditions and low-interest rates in the broader market.
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
| January | 4.641% | 4.585% | 4.831% | 4.601% | 5.54% | 4.21% |
| February | 4.940% | 4.607% | 4.324% | 4.546% | 5.31% | 4.29% |
| March | 4.920% | 4.827% | 4.553% | 4.799% | 5.29% | 4.30% |
| April | 5.029% | 4.625% | 4.311% | 4.591% | 5.19% | 4.16% |
| May | 5.222% | 4.668% | 4.320% | 4.850% | 5.08% | 4.15% |
| June | 5.320% | 4.596% | 4.232% | 5.062% | 5.069% | 4.53% |
| July | 5.259% | 4.766% | 4.091% | 4.961% | 4.952% | 5.23% |
| August | 5.301% | 4.537% | 4.093% | 4.909% | 4.96% | 5.24% |
| September | 5.250% | 4.376% | 4.082% | 4.902% | 5.002% | 5.70% |
| October | 5.492% | 4.635% | 4.261% | 4.801% | 4.821% | 5.45% |
| November | 5.591% | 4.510% | 4.357% | 4.778% | 4.879% | 5.46% |
| December | 4.926% | 4.499% | 4.596% | 4.873% | 4.782% | 5.46% |
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