May SBA 504 Interest Rates Are Sub 3%
The May 2021 SBA 504 debenture pricing was competed on May 6, 2021.
25 Year Term 2.93%
20 Year Term 2.85%
10 Year Term 2.61%
The SBA is offering a 504 Loan with a 25-year maturity for the acquisition of owner-occupied commercial real estate and related costs. This is in addition to the 10 and 20 year loans currently available in the 504 Loan Program. Loans are typically eligible for up to 90% financing of project costs. Rates include monthly servicing fees to CDC, SBA, and central servicing agent; based on SBA FY21 fees. SBA 504 refi rates are approximately 4 basis points higher than debenture pricing noted above.
SomerCor was awarded Accredited Lender Program (ALP) status by the U.S. Small Business Administration!
ALP is a prestigious designation granted by the SBA to high performing, non-profit SBA 504 certified development companies (CDC).
CDCs with ALP designation have increased authority in the processing, closing, and servicing of SBA 504 loans – resulting in an expedited lending experience for borrowers and lending partners. In addition, pending SBA final rules, SomerCor will be able to participate in the new SBA 504 Express Loan program.
“The SBA 504 program gave us access to favorable financing for large scale projects that could not have been possible with conventional financing. SomerCor has been excellent to work with every time!â€
Accord Carton has partnered with SomerCor on four SBA 504 loans – real estate and heavy equipment – since 2004.
Borrowers can combine equipment and commercial real estate purchases in a single 504 loan. The 504 program can also be used for equipment only deals, securing a low fixed interest rate, but over a 10 year term.
