January 2025 SBA 504 Interest Rates

01/09/2025|Kimberly Brisky|SBA 504, SBA Interest Rates

25 Year Term 6.51%

20 Year Term 6.58%

10 Year Term 6.64%

The January 2025 SBA 504 debenture pricing was completed on January 9, 2025. The SBA offers 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 FY25 fees. SBA 504 refi rates are approximately 3 basis points higher than debenture pricing noted above.

SBA 504 Reference Guide

SBA 504 REFI Reference Guide

The SBA 504 loan program provides a long-term, fixed rate for business owners to build, buy, and refinance fixed assets – like commercial real estate and heavy equipment.

To increase the impact of the U.S. Small Business Administration’s (SBA) premier economic development initiative, the agency made enhancements to the SBA 504 loan program in 2024, including:

Removing the $16.5 million cap on 504 Green Loans;
Updating the Alternative Size Standard for inflation to expand access to capital for more mid-size businesses; and
Modernizing the SBA 504 refinance program to streamline the loan process and expand borrower eligibility.

To learn more, check out this story via the Daily Herald by SomerCor Chief Lending Officer, Margaret Griffin.

There is big news for smaller SBA 504 loans! The U.S. Small Business Administration made the SBA 504 ALP Express Program permanent, effective January 17, 2025.

The ALP Express option can expedite the approval, authorization, and closing of certain loans less than $500,000. The program streamlines small dollar 504 loan approvals to get critical capital in the hands of small businesses faster, while maintaining prudent underwriting and risk. Participation is limited to CDCs, like SomerCor, that have been awarded Accredited Lender Status by the SBA. Learn more about ALP Express Program and how it could help your small business clients.