How SBA 504 Loan Interest Rates To Purchase Real Estate Are Determined

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Manage episode 238801390 series 2518941
By Ryan Smith. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.
The SBA 504 guaranteed loan program to purchase commercial real estate is comprised of two loans. One provided by an SBA Preferred Lending Partner and another by an SBA Community Development Corporation (CDC). SBA Guaranteed 504 real estate loan rates on the second portion also referred to as the Debenture are fixed based on the 5 year and 10 year treasury index rate plus a predetermined fixed rate and an additional percentage rate to capture ongoing annual fees.

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