The interest rate for the 20 and 25-year SBA 504 loans hit yet another historic low for the month of September. The effective fixed rate for a
20-year loan fell to 3.36%, while the fixed rate for a 25-year loan fell to 3.46%. Not to be overlooked, the interest rate for refinancing is also experiencing record lows, with a 20-year rate of 3.39% and a 25-year rate of 3.49%.
SBA 504 loans can be used for owner-occupied commercial real estate projects - land and building purchase, renovations, and new construction. The 10-year 504 loan can be used to acquire production equipment. Small businesses may also potentially use a 504 loan to refinance their commercial and/or equipment debt.