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. The SBA’s lending partners, Certified Development Companies (CDCs) are busy working with small business borrowers who are taking advantage of this record low interest rate to finally purchase or build their new facilities.
(Vocus/PRWEB ) April 14, 2009 — NADCO, the trade association for the nation’s Certified Development Companies (CDCs), reports that the interest rate for a 20-year SBA 504 loan has hit a record low for the projects funded in April 2009. This rate is the lowest it has been since the program’s inception in 1986. The April debentures that funded this month’s SBA 504 loans were sold to investors at an interest rate of 4.31%. 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 this month.