WASHINGTON ? Feb. 9, 2012 ? Interest rates under the Small Business Administration?s (SBA) 504 loan program should hit their lowest level on record. 504 loans provide stable, long-term, fixed rate financing for commercial real estate or the purchase of other capital fixed assets.
Debenture bonds that funded this month?s 20-year 504 loans were sold to investors at an interest rate of 2.63 percent, falling below the previous record of 2.76 percent set in October of 2011. The official interest rates for 20-year 504 loans should be published by Feb. 14 but are expected to be about 4.70 percent for 20-year standard loans and 4.91 percent for 20-year refinance loans, including servicing fees, for small business borrowers. The official 10-year 504 interest rates (which are published bimonthly and set last month) are 3.81 percent for standard loans and 4.34 percent for refinance loans.
Both the 20- and 10-year SBA rates are fixed for the term of the loan and require as little as a 10 percent borrower downpayment.
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 ? no limit on overall project size).
Proceeds from 504 loans may be used for the purchase or refinance of owner-occupied commercial real estate, heavy-duty machinery and equipment and other capital fixed assets that have a useful life span of at least 10 years.
?There is no better deal available today to small business owners looking to purchase commercial real estate, expand existing facilities or upgrade heavy duty equipment,? says Todd Kocourek, president & CEO of .
For more information, visit the
? 2012 Florida Realtors?
Source: http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=271516
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