October 2025 SBA 504 Interest Rates
25 Year Term 5.92%
20 Year Term 5.98%
10 Year Term 5.59%
The October 2025 SBA 504 debenture pricing was completed on October 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 the CDC, SBA, and central servicing agent; based on SBA FY26 fees. The SBA also reinstituted an upfront guaranty fee of 50 basis points for non-manufacturing projects. Rates for manufacturing businesses (primary NAICS Code in sectors 31, 32, and 33) are approximately 25 basis points lower than non-manufacturing projects due to the waiver of the annual service fee.
Government Shutdown Impact on SBA 504 Program
A federal government shutdown began on October 1, 2025, temporarily pausing new SBA 504 loan approvals. Any applications not approved by 11:59 p.m. on September 30 will remain on hold until the SBA resumes operations. Monthly payments for existing SBA 504 borrowers will continue without disruption, and the October loan pricing and funding cycle is unaffected.
SomerCor remains fully operational and our loan officers, closing, and servicing teams are available to support lending partners and borrowers throughout the shutdown. We will share updates as they become available. For questions, please contact us at (312) 360-3300 or reply to this email.
October is Manufacturing Month – a time to celebrate the people, innovation, and impact driving one of Illinois’ most vital industries. SomerCor President & CEO Manny Flores sat down with David Boulay, Ph.D., President of the Illinois Manufacturing Excellence Center (IMEC), to talk about the opportunities, challenges, and policy shifts shaping manufacturing’s future in our state.
From new SBA 504 fee waivers for manufacturers to the ongoing push for onshoring and workforce upskilling, their conversation highlights how SomerCor and IMEC are partnering to help Illinois manufacturers invest, grow, and compete.
Read the full blog post to hear Manny and David’s insights and learn how we’re supporting makers across Illinois.
SBA Announces Fee Waivers for SBA 504
Manufacturing Loans in FY26
Effective October 1, 2025, the SBA is waiving all upfront guaranty and annual servicing fees for manufacturers using the SBA 504 program. Part of the federal Made in America Manufacturing Initiative, this update makes it more affordable for manufacturers to finance growth or refinance existing debt.
Manufacturing businesses with primary NAICS codes 31, 32, or 33 are eligible for these waivers on SBA 504 loans approved between October 1, 2025 – September 30, 2026.
Read more details here: SBA 504 Fees Waived for Manufacturers
