SBA 504 Rates

Anyone thinking the Fed, and its chairman in particular, might soften the commitment to raise rates and keep them high was disappointed in Wednesday’s announcement. The central bank’s fourth consecutive 75 bps increase brought its funds target to a range of 3.75-4.0% and while it was indicated the December hike might be reduced 2023 increases might be extended.

What is most compelling about Chairman Powel’s statements was “the question of when to moderate the pace of increases is now much less important than the question of how high to raise rates and how long to keep monetary policy restrictive.” The latter part of this quote confirms markets should not expect a quick U-turn on Fed policy once it reaches its terminal rate, now believed to hit as high as 5.10% in June 2023.

Questions about a potential 504 loan? Reach out to one of our Loan Officers below-

Note: 10-year 504 loan fundings occur on an every other month basis. The above rate reflects the 10-year 504 rate for the November, 2022 funding.