The SBA 504 loan program reached a couple of milestones this month. First, the 25-year loan program (which you can read about in our by-lined article here) reached $1 Billion in lending, just under a year since the program’s first funding in July 2018. This figure represents 1,289 fixed-rate 504 loans to U.S. small businesses.

The 25-year maturity’s success is attributable to an outstanding interest rate, which is fixed for 25 years. Over the past twelve months, the average effective rate for the 25-year product was below 5%.

The second big news is the 20-year SBA 504 loan funding at a historically low of 3.98%. This is the lowest it’s been in the program’s 33-year history, and below the December 2012 record of 4.01%.. 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. (See chart above.)

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.