SBA Says Interest Rates at Record Low for Small Business Borrowers
The Small Business Administration’s (SBA) 504 loan program is currently providing long-term, fixed rate financing for commercial real estate at the lowest interest rate since the program’s inception. This low rate, coupled with the new fee reductions provided by the Congressional stimulus bill, led to an effective interest rate – including servicing fees – of only 5.25% for the month of April.
The SBA’s 504 loan program provides long-term, fixed rate financing for commercial real estate. Since its inception the 504 program has funded nearly $40 billion in loans to growing small businesses. Small business borrowers are taking advantage of these record low interest rates to purchase, build or expand their facilities.
More and more commercial properties are coming onto the market at attractive prices, adding to the advantage of low interest rates and fees. If a small business has been considering investing in a building, now is a great time to act.