• The July effective interest rate for a 20 year 504 loan is 4.76%, and the rate for a 10 year 504 loan is 4.50%
  • Clint Shiflet, Senior VP & Area Manager at Idaho Central Credit Union in Meridian, named the 2016 SBA 504 Lender of the Year. Congratulations and thank you, Clint!
  • IDAHO CENTRAL CREDIT UNION was named the 2016 SBA 504 Financial Institution of the Year. "Thank you", Idaho Central Credit Union for all you do to help businesses grow!
  • SBA 504 loans approved during FY2016 now how lower fees! The "up front" SBA Guarantee Fee has been reduced from 0.5% to zero. The ongoing SBA Guarantee Fee (paid annually) is reduced from 0.9375%, or 93.75 basis points per annum, to 0.914% or 91.4 basis points per annum of the outstanding balance of the loan. The total administrative costs lowered from 2.65% to 2.15%.

Capital Matrix | Lease vs Purchase

As their company grows, many business owners consider whether they should lease or buy a building to accommodate their current and future space needs.  Building ownership offers many benefits, and the SBA 504 program's low down payment requirement and low, fixed interest rate makes it possible for business owners to take advantage of those benefits - without seriously depleting their working capital.

Consider whether your business could benefit from these benefits of owning your building:

  • Lock in occupancy expenses and avoid increasing lease rates
  • Owning is the only way to benefit from market appreciation in real estate values
  • Each monthly payment creates equity for you - not your landlord
  • Leasing out a portion of your building can help cover your mortgage payments
  • The tax benefits of owning significantly lower your effective occupancy costs

Nancy Lemas, President and CEO of Lemas Investment Group, Commercial Real Estate Advisors, has nearly 25 years' experience in the commercial real estate industry.  She has owned and operated her own brokerage and property management companies in Boise since 1998.  During her career, she has counseled many business-owners as they work through the decision to buy or lease a building for their operation, and she has found the SBA 504 program to be a valuable tool for her clients. Watch her video below.


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