According to the National Association of Development Companies (NADCO), “Borrowers of SBA 504 loans this month will be in the first class of small business borrowers with 504 financing fixed at a rate below 4% in the program’s history.”
“This is the first time a 20-year 504 effective rate calculation has been this low (based on the current fiscal year borrower fee),” says NADCO.
“Another standout metric is the 504 rate when compared to the current prime rate,” NADCO continues in a press release. “At 152 basis points under the Bank Prime Rate, the June funding is the furthest below prime that 20-year rates have been since May 2007. Even if the Federal Reserve makes the two ¼-point policy rate cuts anticipated by the market this year, the 504 effective rate may remain approximately one full point below prime (not including any additional spread over prime charged by many commercial real estate lenders).”
To find out more about the First Frontier SBA504 Program and how this historically low rate could benefit your project contact Tom Seasoltz or Rich Lasek at ABCD Corp. TODAY!!!
