What Are Current SBA 504 Loan Rates?

SBA 504 loan rate on the official SBA website, which posts the current debenture rate each business day. As of [insert today's date], the rate listed there reflects the most recent public data.

• Visit <sba.gov> and navigate to 'Funding Programs → 504 Loan Program → Current Debenture Rate.'
• Note the 'Effective Date' shown; that date is the reference point for the posted rate.
• Record the rate and the date, then compare it to any quoted rate from your CPA, lender, or financing portal.
• Verify that the lender's disclosed rate matches the SBA rate plus any agreed‑upon spread (the 'CDC portion').
• Re‑check the SBA page before signing any documents, as the rate can change daily.

Always double‑check the rate on the SBA site on the day you finalize loan terms to ensure you're using the latest figure.

Check the SBA's official sources to confirm the current 504 loan rate.

• Visit the SBA's Debenture Rate page on SBA.gov, which lists the weekly rate used for 504 loans.
• Review the quarterly Interest Rate Table PDF published by the SBA, also accessible from SBA.gov.
• Look at the Certified Development Company (CDC) that sponsors your loan; most CDCs post the current rate on their website or provide it in the loan proposal.
• Examine the rate disclosed by the participating lender in the loan commitment or on the lender's online portal.
• Verify the underlying Federal Reserve Effective Federal Funds Rate, since the 504 debenture rate is tied to it; the Fed's website publishes daily values.

All sources update regularly, so always confirm the date shown before relying on the rate.

The SBA debenture rate is set each month by the SBA's Office of Credit Risk Management using a simple formula: the latest 10‑year Treasury yield plus a fixed spread that the agency publishes. The Treasury component reflects overall market conditions, while the spread is intended to cover the SBA's credit risk and remains the same for all debentures of a given size.

To know the rate that will apply to your 504 loan, visit the official SBA website and locate the 'Current 504 Debenture Rate' table, which lists the rate and the date it was posted. Confirm with your lender whether they add any lender‑specific margin to that published figure, because such adjustments can affect your overall project cost. Always double‑check the exact rate before finalizing loan terms.

The fees you pay on an SBA 504 loan raise the cost you actually incur, so the effective rate - often expressed as an APR - is higher than the headline debenture rate the SBA publishes (see the SBA's rate page for the most recent figure, e.g., March 2024).

Typical fees that affect the effective 504 rate

• SBA guarantee fee: a percentage of the debenture amount, usually charged upfront; it adds directly to the loan's cost.
• 504 loan upfront fee: a flat or percentage charge from the Certified Development Company (CDC) that reduces the net proceeds you receive.
• Lender origination or underwriting fee: a fee the participating lender may impose; it is added to the financed balance or paid out‑of‑pocket.
• Third‑party costs: appraisal, environmental study, title search, and closing attorney fees; while not always financed, they increase the total outlay required to close the loan.
• Interest reserve or 'interest on reserve' fee: some lenders set aside cash to cover early interest payments; this reserve is effectively an additional cost of borrowing.

To see the impact, add all fees to the loan amount, then divide the total cost by the funded principal and annualize it. Many lenders provide an APR figure that already incorporates these charges; if not, a simple spreadsheet can estimate the effective rate.

Make sure you obtain a detailed fee schedule from the CDC and the lender, confirm which fees are financed versus paid cash, and run the numbers before signing. Knowing the true cost helps you compare 504 financing with 7(a) or conventional options in the next section.

sample payment schedule that applies the SBA‑published CDC debenture rate (5.25% as listed on the SBA website on Feb 12 2026) and a typical bank term‑loan rate.

1. Break down the financing - For a $500,000 project, a standard SBA 504 loan is funded 50% by a bank term loan ($250,000), 40% by a CDC debenture ($200,000), and 10% by borrower equity ($50,000).
2. Assign interest rates - The CDC portion uses the current 5.25% debenture rate. Bank rates are set by individual lenders; this example uses 6.0% as a common market quote, but you must obtain the exact rate from your lender.
3. Calculate monthly payments - Assuming a 20‑year amortization and level payments:
   • Bank loan: 6.0% → $1,798 per month
   • CDC debenture: 5.25% → $1,332 per month

   Total estimated monthly debt service = $3,130. (Numbers are illustrative; use your actual rates and term to compute precise payments.)

4. Check your numbers - Compare the calculated payment with the cash flow of the project, and confirm the exact rates and fees in the loan commitment documents before proceeding.

A 504 loan generally provides a lower, fixed rate than both a 7(a) loan and a typical conventional business loan, but the exact spread depends on the SBA debenture rate published on the SBA website (see the 'verify official 504 rates' section for the current figure).

The 7(a) program rates are tied to the prime rate plus an issuer‑specific spread, so they often move with market fluctuations and can end up higher than the 504 rate for comparable borrowers; they also may include a variable component that the 504's fixed debenture does not.

Conventional loans are set by the lender's own pricing model, which usually reflects the borrower's credit score, collateral, and market conditions. Because they lack the SBA's subsidized portion, they typically carry a higher interest rate and may include larger upfront fees than a 504 loan.

What to do next:

• Get the latest SBA debenture rate from the SBA's official rate table.
• Request a rate quote for a 7(a) loan from at least two SBA‑approved lenders.
• Ask conventional lenders for their best‑available business loan rate and fee schedule.
• Compare the quoted rates, total costs, and repayment terms side‑by‑side before deciding.

Safety note: Verify the actual rates in your loan commitment documents before signing.

• Boost your equity contribution. A larger down payment reduces the CDC's loan share, so less of the fixed 504 debenture rate applies to the overall financing. Check the loan estimate to see how each additional equity point cuts the interest cost.
• Pick the CDC series with the lower published rate. The SBA offers a 5‑year and a 10‑year debenture, each with its own fixed rate set by the agency. If the 5‑year rate is lower, selecting that term reduces the annual cost, though the repayment schedule will be shorter.
• Shop for a CDC with lower guaranty and processing fees. The CDC's fees are added to the debenture and affect the effective rate. Comparing fee disclosures from several CDCs can reveal a cheaper overall cost, even though the base interest rate itself is non‑negotiable.
• Consider refinancing when market rates fall. Once the loan is established, a later refinance into a new CDC debenture at a lower published rate can lower the effective cost, subject to any pre‑payment penalties or new fee structures.

Lock the rate as soon as you have a firm loan commitment and before the scheduled closing, ideally after the SBA has published the debenture rate that your 504 loan will use.

Because 504 rates move with the debenture benchmark, they can change weekly. Most lenders offer a 30‑ to 60‑day lock once the debenture rate for the upcoming pricing period is set; choose a lock window that comfortably covers the remaining paperwork and underwriting steps.

Before you sign, ask your SBA 504 loan officer for the lock period, any associated fee, and a written confirmation of the exact rate. Verify that the lock will remain in effect through your expected closing date. (Safety note: review the lock terms in your loan agreement before proceeding.)

The SBA 504 loan rate is built from three parts: the SBA's debenture rate, a fixed 504C spread, and any additional margin the private lender applies. The debenture rate, published weekly on the SBA website (as of April 2024), reflects current U.S. Treasury yields, while the 504C spread is set by the SBA and stays the same for the life of the loan. Private lenders may add a small, lender‑specific margin that varies by borrower risk, project size, or location.

Because the quoted rate excludes fees, the true cost - often expressed as an effective APR - depends on financing charges such as guarantee fees, closing costs, and any pre‑payment penalties. Always confirm the exact rate and fee structure in the loan agreement and compare the lender's margin with other SBA 504 offers before committing.

Refinance a SBA 504 loan when the savings from a lower interest rate or better terms outweigh the costs of closing the new loan.

If market 504 rates have fallen enough to cover any refinancing fees, a new loan can reduce your monthly payment and total interest.

When you can shorten the amortization period, you pay less interest over the life of the loan, even if the new rate is similar to the original.

Improved business credit often qualifies you for a smaller spread over the SBA debenture rate, which directly lowers your effective rate.

If you have built equity in the financed asset, refinancing can let you pull cash without taking on a separate loan, provided the new loan's cash‑out amount meets your needs.

Approaching the end of the original debenture's fixed‑rate period or an upcoming interest‑rate reset may make refinancing attractive to lock in a more favorable rate now.

Before proceeding, review any prepayment penalties, calculate the net savings after fees, and confirm the terms with your SBA‑approved lender.