August 2023 SBA 504 Interest Rates
The August 2023 SBA 504 debenture pricing was competed on August 10, 2023.
25 Year Term 6.55%
20 Year Term 6.60%
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 FY23 fees. SBA 504 refi rates are approximately 2 basis points higher than debenture pricing noted above.
On August 1st, new rules impacting the SBA 504 program went into effect. Per the Small Business Administration (SBA), these program updates seek to “increase small businesses’ ability to access funding to start up and grow.†Specifically, the SBA has eased its eligibility, credit, and documentation requirements resulting in more streamlined loan processing and faster approvals. Click here to learn more.
The SBA 504 loan process has not changed for third party lending partners, but these program updates will allow CDCs the flexibility to continue to use prudent underwriting practices and maintain requirements to focus on ensuring repayment ability.
We anticipate the SBA will release an updated version of SOP 50 10 7 with technical corrections in the future. Stay tuned for updates on this and other news related to the SBA 504 program.
