504 Rates for August – October 2018
Rates have remained relatively steady over the last 3 months. The 20-year rates for the last 3 months have been:
- August 5.301%
- September 5.250%
- October 5.492%
Rates for the new 25 year notes have been, likewise, very attractive over the last 3 months:
- August 5.320%
- September 5.351%
- October 5.532%
See the chart, below, for a rate comparison between 20-year rates, 25-year rates and refinance rates.
With the potential for 2-3 more interest rate increases in the coming months, locking in up to 40% of your borrower’s real estate/capital equipment loans for 20/25 years is client service at its best!!
Keep in mind, too, that the 504 Refinance Program remains an option for your borrowers. No expansion of the borrower’s facility is required. The refinance rate for October was 5.578%, representing a great fixed rate for borrowers seeking to extend maturities on existing debt AND add a fixed rate component to their debt structure.
To quickly determine whether your borrowers existing debt may be eligible for 504 Refinancing, answer the following:
- Has the borrower in business for more than 2 years?
- Is debt to be refinanced “Qualified Debt”?
- commercial loan
- Qualified Debt incurred for benefit of the small business seeking the loan
- 85% or more of Qualified Debt used to acquire an Eligible Fixed Asset
- Qualified Debt incurred at least 2 years prior to applying for 504 Refinance
- Qualified Debt secured by eligible 504 assets for at least 2 years (building/equipment primarily)
- Borrower current on all payment for at least 1 year prior to applying for 504 Refinance?
If your borrowers existing debt meets these initial qualifications and is NOT a part of another Federal loan program, you may want to explore the 504 Refinance further for your borrower.
Careers
SBA Interest Rates – August-October
504 Rates for August – October 2018
Rates have remained relatively steady over the last 3 months. The 20-year rates for the last 3 months have been:
With the potential for 2-3 more interest rate increases in the coming months, locking in up to 40% of your borrower’s real estate/capital equipment loans for 20/25 years is client service at its best!!
Keep in mind, too, that the 504 Refinance Program remains an option for your borrowers. No expansion of the borrower’s facility is required. The refinance rate for October was 5.578%, representing a great fixed rate for borrowers seeking to extend maturities on existing debt AND add a fixed rate component to their debt structure.
To quickly determine whether your borrowers existing debt may be eligible for 504 Refinancing, answer the following:
If your borrowers existing debt meets these initial qualifications and is NOT a part of another Federal loan program, you may want to explore the 504 Refinance further for your borrower.