• 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 | 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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