504 Interest Rate Drops Below 5%

The 20-year fixed interest rate on Small Business Administration (SBA) 504 loans for the purchase of commercial real estate fell to an astounding 4.93% for August, marking the second lowest interest rate in 504 program history.

The 504 interest rate had been at 5.21% for July, 5.29% in June and 5.52% in May. The lowest 504 rate on record was set at 4.86% in October 2009.

“This is tremendous news for small business owners looking to purchase or renovate commercial property, especially when commercial credit in general is currently difficult to get,” said Todd Kocourek, president and CEO of Florida First Capital Finance Corporation, Florida’s statewide 504 certified development company.

While 504 interest rates historically track well below conventional rates, the low August rate is a rare opportunity for 504 borrowers.

“Such a phenomenal rate may not be available again. Small business owners should strongly consider the 504 loan program – they will be hard pressed to find a better means for financing their growth,” said Kocourek.

504 loans offer access to low interest, long-term, fixed-rate financing with only 10% down payment requirements for the purchase, construction or renovation of owner-occupied commercial real estate and/or the acquisition of industrial equipment or other fixed assets.

For more information about 504 loans in Florida, contact Florida First Capital by visiting www.ffcfc.com, emailing us at insider@ffcfc.com or calling 888.320.5504.