Current Interest Rates

January 2023 504 Effective Fixed Rates:

6.28%   20 -Yr Fixed
6.31%    25 -Yr Fixed

SBA 504 Rates are published monthly

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When the SBA guaranties 75-85% of a small business loan, what are the benefits?

For Banks, The Benefits of 7a Include:

* The ability to refinance existing commercial loans
* Significantly reduced credit exposure
* Improved quality of loan portfolio and balance sheet
* Freed up capital; 7a eliminates capital reserve requirements on the guaranteed portion of the loan
* The guaranteed portion doesn’t count toward the community bank’s legal lending limit
* Opportunities for selling the guaranteed portion on the secondary market

For Small Businesses, 7a Can Solve These Problems:

* Insufficient collateral to cover a loan request
* A need to restructure debt for better terms, lower monthly payments, an upcoming balloon
payment or for improved cash flow
* A way to finance a business that doesn’t fit conventional banking parameters
* Or a loan for:

  • Business acquisition
  • Business growth or expansion
  • Permanent working capital
  • Real estate or equipment purchases