September SBA 504 Rates

With a mere 10% down payment, the SBA 504 loan emerges as the prime option for small businesses seeking to acquire or refinance commercial properties.

SBA 504 rates remain notably below the current prime rate of 8.5%, and offer the following advantages over conventional financing:

• Low Down Payment: Typically, only 10% down, making it more accessible for businesses with limited capital.

• Fixed Interest Rate: Rates are fixed, offering predictable payments and protection against volatile market fluctuations.

• Long Term: Terms can extend up to 25 years, which can lower monthly payments and improve cash flow.

• Economic Development Focus: Designed to promote economic growth and job creation, potentially qualifying businesses for additional incentives or considerations.

• Asset Financing: Specifically for the purchase of long-term fixed assets like land, buildings, and large equipment, allowing businesses to grow and expand.

• Lower Rates: Often, the interest rates are below-market, making it a more cost-effective solution for small businesses.

• Refinancing Option: Allows for the refinancing of existing debt under certain conditions, potentially helping businesses improve their financial position.

• Protection from Rate Hikes: With a fixed interest rate, businesses are safeguarded against unexpected hikes in interest rates.

Considering these advantages, the SBA 504 loan is a prime option for many small businesses looking to purchase or refinance major fixed assets.

Contact a TCM Loan Officer today-

Debby Gustafson 651.302.7234
Sheil Nelson 651.302.7226
Mike Kinderman 651.302.7239
Michael Kinninger 651.302.7240