SBA 504 pricing is best viewed as a blended effective rate combining the bank first mortgage and the CDC/SBA second.
SBA 504 loan interest rates are best evaluated as a blended effective rate. That is because a 504 project usually includes two loan pieces: a bank first mortgage and a CDC/SBA second mortgage.
The CDC/SBA portion is typically fixed for a long term, while the bank portion may be fixed or variable depending on the lender. The borrower should compare the combined cost of both pieces, not just one rate in isolation.
For real estate and fixed-asset projects, the blended effective rate and monthly payment are often more useful than quoting the CDC debenture rate alone.
Standard SBA 7(a) pricing is often Prime plus 1% to 3%, while smaller loans may price higher and 504 uses blended rates.
SBA rates today depend on Prime, lender spread, loan size, and program, with many standard 7(a) loans at Prime plus 1% to 3%.
Many standard SBA 7(a) loans price around Prime plus 1% to 3%, while smaller loans may carry higher allowed spreads.
Fixed SBA loan rates offer payment stability, while variable rates may start lower but can change with market conditions.
Have an SBA loan scenario to review? Market Direct Capital can help evaluate structure, eligibility, and next steps.
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