Small Business Lending Insider

June 2019
Latest Rates


SBA 504 10-yr 2.66% 4.37% 4.43% June 2019
SBA 504 20-yr 2.60% 3.98% 4.02% June 2019
SBA 504 25-yr 2.77% 4.09% 4.12% June 2019
SEDA-COG PIDA 3.50% N/A N/A Through Jun. 2019
SEDA-COG RLF 4.25% N/A N/A Through Jun. 2019
SBA 504 Rate Hits Historic Low
Good news for new or expanding businesses - a federal loan program's interest rate is the lowest in the program's history.

The Small Business Administration (SBA) 504 loan program's 20-year
effective fixed rate for June is 3.98%, the first time it has fallen
below 4%. Rates for other term
options are also at or near recent lows. The rates have decreased for the past six months and have been below Prime for seven months. Rates are set monthly for loans that have closed the previous month.

SEDA-Council of Governments (SEDA-COG) partners with banks to offer businesses statewide this long-term, fixed-rate financing that can be used to acquire fixed assets for expansion or modernization or to refinance existing real estate or equipment debt. SBA 504 loans can be as small as $100,000 up to $5 million (in some cases $5.5 million).

Benefits of SBA 504 loans:
  • Long-term, fixed-rate financing (10 years for equipment and 20 or 25 years for real estate)
  • Lower down-payment vs. conventional financing (as low as 10% for existing businesses)
  • Financing up to 40% of eligible costs (land and building purchase, building construction, building renovations, equipment, refinancing of real estate or equipment debt)
  • Loan is fully amortized (no balloon payment)
  • Reduces risk for the partnering lender
For-profit businesses with a net worth less than $15 million and net income less than $5 million may be eligible. For real estate financing, the business must occupy a majority of the space.

John Reichard, SEDA-COG senior relationship manager, said the SBA 504 loan program is a proven success and win-win-win for the small business, the community and participating lenders.

"Businesses tell us again and again how the SBA 504 low interest rates and long terms help with cash flow and empower them to expand when it otherwise might have been difficult," Reichard said. "This in turn promotes economic development in our communities."

For more information on SBA 504 financing through SEDA-COG, visit

Milestone Reached for 25-Year
SBA 504 Loans
National Association of Development Companies (NADCO) Press Release June 12, 2019 - The SBA's 25-year loan product, which had its first funding in July of 2018, reached a milestone today after its warm reception twelve months ago from small businesses, banks, and investors; after today's funding the total amount lent under the program hit a face value of  $1.04 billion, skimming past the  $1 billion funding milestone in the final month of the first year of launch. This figure represents 1,289 fixed-rate 504 loans to U.S. small businesses, with today's sale representing 184 loans totaling  $146.5 million.

Arguably the 25-year maturity's success is attributable to the jaw-dropping interest rates, which are fixed for 25 years, currently at 4.09%. Over the past twelve months, the average effective rate for the 25-year product was 4.96%, only 9 basis points above the 504 loan's 20-year product's average fixed effective rate,  currently also funding at historical lows of 3.983%.

About Us

SEDA-COG's Business Finance Department serves the entire state of Pennsylvania and  rural counties in Maryland and West Virginia  for the   SBA 504 Program .
For PIDA and SEDA-COG loans, we cover  an 11-county area in central Pennsylvania including Centre, Clinton, Columbia, Juniata, Lycoming, Mifflin, Montour, Northumberland, Perry, Snyder, and Union counties.

For more information - or

Senior Relationship Manager II
P: 570-524-4491
C: 570-850-0195
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