October 2023 SBA 504 Interest Rates
The October 2023 SBA 504 debenture pricing was competed on October 5, 2023. April 2024 SBA 504 Interest Rates
25 Year Term 7.13%
20 Year Term 7.18%
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 FY24 fees. SBA 504 refi rates are approximately 3 basis points higher than debenture pricing noted above.
Federal Government Funding Update
On September 29th, Congress avoided a shutdown and passed a short-term continuing resolution to fund the government through November 17th. The SBA 504 program is operating under the FY23 approved authorization levels. SomerCor continues to serve our third party lending partners and small business borrowers without interruption.
If you have questions about this or would like information regarding updates to the 504 program SOP, please contact us to schedule a briefing with a member of our loan origination team.
Lower SBA 504 Fees in FY2024
- The upfront guaranty fee is 0% in FY24
- The annual service fee is 0.364% in FY24 for regular 504 loans, a decrease from 0.4405% in FY23Â
- The annual service fee is 0.389% in FY24 for refinance without expansion, a decrease from 0.4559% in FY23
