July Edges Out June for Lowest 504 Interest Rate of the Year

The 20-year fixed interest rate on Small Business Administration (SBA) 504 loans for the purchase of commercial real estate fell to 5.21% for July, edging out June as the lowest rate for the loan program so far this year.

This is continued good news for small business owners looking to purchase or renovate their existing properties, especially during a time when long-term, affordable small business credit is hard to obtain.

“This is truly an extraordinary time for the 504 loan program and ultimately for borrowers looking to invest in their small business for the long haul,” said Todd Kocourek, president and CEO of Florida First Capital Finance Corporation, Florida’s statewide 504 certified development company. “Credit is readily available and 504 rates continue to fall to some of the lowest levels ever in the program’s 24-year history.”

The 504 interest rate had been at 5.29% in June and 5.52% in May, and reached its peak at 5.79% in January. Last year, 504 interest rates reached historic record lows four times, with the lowest rate ever at 4.86% in October 2009.

SBA 504 loans offer access to low interest, long-term and 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.

“Business owners who understand the benefits of owning rather than leasing their space and equipment will recognize there may never be a better opportunity to invest in growing their business,” said Kocourek.

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.