September 2024 SBA 504 Interest Rates
25 Year Term 5.76%
20 Year Term 5.83%
10 Year Term 5.87%
The September 2024 SBA 504 debenture pricing was completed on September 5, 2024. 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.
The commercial real estate market continues to find its footing after the pandemic. Business owners may have more options to choose from now, but financing is still a challenge.
The SBA 504 program offers a public-private lending solution for business owners to buy, expand or refinance major fixed assets like owner-occupied commercial real estate and heavy equipment.
Commercial real estate professionals can highlight the borrower-friendly terms of the SBA 504 loan to help bridge the financing gap and close more deals with the support and expertise of a certified development company, like SomerCor.
To learn more, check out this story via the Daily Herald by SomerCor SVP, Eric Bacon.
The SBA 504 refinance program offers traditional lenders a way to help new and existing customers access equity and take advantage of fixed interest rates, while at the same time reducing their own credit exposure. Plus, existing government-guaranteed debt is now eligible. Connect with SomerCor today to learn more about the 504 REFI and how it can support you or your small business clients as a strategic debt restructuring solution.
