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SBA-504 Loan Rates Reach A Historic Low!

September 7, 2012 | Small Business Loans

The time to grow your business is now!

As of this week, the SBA 504 10-year and 20-year loan rates have reached an all time record low! Since being founded in late 1986, the SBA-504 program has provided over $50 billion dollars in capital for growing small businesses and over 2 million jobs for their local economies. [source]

If buying your own building is desirable, one of the SBA’s flagship programs called the SBA-504 loan can help you achieve your goal. Most 504-financed purchases are for office, retail or industrial buildings. SBA-504, fixed-rate loans finance 40 percent of the total purchase. A bank or other lender provides 50 percent and the business owner contributes a 10 percent down payment. For example, if the building purchase price is $500,000, the following would be the loan structure:

Bank 1st mortgage – $250,000

CDC 2nd trust deed – $200,000

Borrower downpayment – $50,000

The best news of all is that the SBA-504 rates are FIXED for the length of the loan. So that means, you can reap the benefits of this low rate over and over with a lower monthly payment.

Not sure if you qualify? Take our easy Prequalify Today questionnaire and find out. Also, as always, you can contact one of the Loan Experts in your area. Click here to see our Loan Expert list.

Current SBA-504 effective rates:
20-year: 4.27% (note rate – 2.239%)
10-year: 3.47% (note rate – 1.019%)

Includes fees to CDC, SBA and central servicing agent; based on pricing published by NADCO 9-4-12

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