TALLAHASSEE, Fla.--(504 Loan Program offered through Florida First Capital is providing stable, long-term, fixed rate financing for the purchase of owner-occupied commercial real estate and other major fixed assets at the lowest interest rates in program history.)--The Small Business Administration's (SBA)
The debenture bonds that funded this month’s 20-year 504 loans were sold to investors at an interest rate of 2.20%, falling below the previous record of 2.37%. The 10-year 504 debenture bonds, which are sold bi-monthly, were sold at an interest rate of 0.98%, which eclipsed the previous record of 1.19%.
The official interest rates for 10-year and 20-year 504 loans should be published on or before Sept. 11. It is expected the low rates for the debenture bond sales this month will result in effective interest rates for small business borrowers – including servicing fees – of only 4.27% for 20-year standard loans and 3.47% for 10-year standard loans.
Both the 20- and 10-year SBA rates are fixed for the term of the 504 loan and require as little as a 10% borrower down payment. Interest rates this low make the 504 Loan Program the very best deal going for small business owners looking to grow and expand their operations through the purchase of major fixed assets, including the purchase, construction, expansion or renovation of commercial property and/or the acquisition of heavy duty machinery and equipment.
SBA 504 loans are paired with private-sector commercial loans, providing up to $5 million of small business financing for standard projects and up to $5.5 million for green initiative and small manufacturer projects (SBA loan portions only; there is no limit on overall project dollar size).
Florida First Capital Finance Corporation is a non-profit certified development company (CDC) that promotes economic development and job creation throughout Florida by working with the SBA and private-sector lenders to provide available and affordable financing to small businesses. Florida First Capital lends under the SBA 504 Loan Program as well as the State of Florida Recycling Loan Program and other small business assistance programs.