SBA 504 Interest Rate Hits Low 5.25%

Interest rates for the SBA 504 loan program have reached an all time low according to the National Association of Development Companies (NADCO). The effective rate for April 2009 is 5.25%.    “What a tremendous opportunity for small businesses. This is the lowest it has ever been since the program began in 1986,” stated SBAC President Tony O’Reilly.   

The SBA 504 loan program provides small businesses with long term financing for fixed assets. Borrowers that close under the current effective rate of 5.25% will lock in this historically low rate for a 20 year term. Since its inception 504 has funded nearly $40 billion in loans to small businesses. Locally the SBAC participated in lending over $78.5 million.    

For more information on the SBA 504 program, contact Stephen George, Sr. Business Development Specialist.