Current 504 Interest Rates:

Interest rates tied to the 504 portion of the loan are set once a month with the sale of a bond on the New York market. These rates are fully amortized over the life of the loan.

Understanding the SBA 504 Interest Rate

20 Year SBA 504 Fixed Interest Rate = 4.462 %

The largest twenty-year 504 bond pool since the Great Recession began funded on May 16th 2012 and included 641 commercial real estate loans to small businesses throughout the country. The total bond pool of $414,500,000 signaled on-going and strong renewed interest in the SBA 504 loan program after three years of recession and limited job creation in the US economy.

10 Year SBA 504 Fixed Interest Rate = 3.757 %

A ten-year bond pool, which only funds in odd numbered months, also funded on May 16th 2012 and included 64 loans to small businesses for capital equipment or commercial real estate.

This graph plots the SBA 504 10-year and 20-year rates against the 10-year Treasury and Prime rates. The rate quoted above, and the purple line on the chart below, reflects the interest rate applicable for newly approved SBA 504 loans -- a fee component included in the interest rate increased for loans approved on or after October 1st, 2011. (The fees attached to a particular SBA 504 loan follow the loan approval date rather than the funding date.) Rates have been trending down since the end of last year.