SBA 504 Loan Rate Drops to Historic Low

This June, SBA 504 borrowers can secure financing at a 20-year fixed rate below 4 percent for the first time in the program’s 33-year history. The 20-year effective rate for June is 3.98 percent, below the December 2012 record of 4.01 percent.

At 152 basis points under the Bank Prime Rate, the June funding is the furthest below prime that 20-year rates have been since May 2007. Market observers are predicting that the Federal Reserve will make two ¼-point interest rate cuts this year, but even with cuts, the 504 effective rate may remain approximately one full point below prime. This is the first time a 20-year 504 effective rate calculation has been this low.

Clearly, no time has ever been better for SBA 504 borrowers to lock in a fixed-rate commercial property loan. Beat the rush that will be triggered by the new low rates, and contact us today to get started. Liberty SBF can get the job done in 45 days or less.