• The October effective interest rate for a 25 year 504 loan is 5.53%, the rate for a 20 year 504 loan is 5.49%, and the rate for a 10 year 504 loan is 5.25%
  • The SBA 504 program priced its first 25 year debenture at 5.32% in July 2018.
  • On April 4, 2018 SBA has made available a 504 loan with a maturity of 25 years! This is in addition to the 10 & 20 year 504 loan. Term of Third Party loan accompanying a 25 year 504 loan must be at least 10 years, the prepayment penalty will remain at 10 years (declining), & the int. rate will be approx. 35 bps higher than the rate of the 20 year 504 loan. Any 504 project approved prior to April 2, 2018 may not be extended to 25 years.
  • SBA 504 Debt Refinance loans approved during FY2019 (10-01-2018 through 09-30-2019) "up front" Guaranty Fee will be 0.50% (50 basis points). The annual service fee will be 0.368% plus 0.027%, for a total of 0.395% (36.8 basis points plus 2.7 basis points) of the outstanding balance of the loan.
  • SBA 504 loans approved during FY2019 (10-01-2018 through 09-30-2019) "up front" SBA Guarantee Fee will be 0.50% (50 basis points) up from 0%. The annual service fee (included in the effective interest rate) will be 0.368% (36.8 basis points) of the outstanding balance of the loan, down from 0.682%.
  • IDAHO CENTRAL CREDIT UNION was named the 2018 SBA 504 Financial Institution of the Year. "Thank you", Idaho Central Credit Union for all you do to help businesses grow!
  • Clint Shiflet, Senior VP & Area Manager at Idaho Central Credit Union in Meridian, named the 2018 SBA 504 Lender of the Year. Congratulations and thank you, Clint!
    

Capital Matrix | Interest Rate History

SBA 504 loans have a fixed interest rate and are fully-amortizing loans with no balloon payments.  They can have either a 10 year, 20 year, or now a 25 year term.

The effective interest rate for a 25 year loan is currently 5.53% which is 24 basis point higher from September's rate of 5.29%.

The effective interest rate for a 20 year loan is currently 5.49% which is 24 basis points higher from September's rate of 5.25% (see below graph).

While 20-year debentures are sold every month, 10-year debentures are sold every other month.  The most current sale of 10-year debentures is September 2018, and the effective interest rate is 5.25%.   

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