Interest Rate

 

The top three reasons to own a commercial building are:

1. Equity – every payment made is an investment in a business owner’s future. They can leverage the accumulated wealth for further business growth or new options when the time comes to retire.

2. Stabilize occupancy costs – rent increases no longer apply; the monthly payment is always the same. SBA-504 loans offer a fixed rate for 20 or 10 years.

3. Preserve cash – in many cases, the monthly payment to own is less than the rent. Small business owners can use the retained working capital to buy inventory, hire new employees, purchase needed equipment or invest in other strategies to grow or improve the business.

interest-rate

Historical SBA 504 Rates 2001-2012
Month/Year 10 Yr. SBA Effective Rates 20 Yr. SBA Effective Rates Prime Rate + 2.75% Prime
Jan. 2001 8.00% 7.96% 12.25% 9.50%
July 2001 8.19% 8.29% 9.50% 6.75%
Jan. 2002 7.17% 7.58% 7.50% 4.75%
July 2002 6.59% 7.10% 7.50% 4.75%
Jan. 2003 5.63% 6.34% 7.00% 4.25%
July 2003 4.91% 5.79% 6.75% 4.00%
Jan. 2004 5.64% 6.35% 6.75% 4.00%
July 2004 6.10% 6.61% 7.00% 4.25%
Jan. 2005 5.86% 6.15% 8.00% 5.25%
July 2005 6.13% 6.04% 9.00% 6.25%
Jan. 2006 6.06% 6.50% 10.00% 7.25%
July 2006 7.45% 7.36% 11.00% 8.25%
Jan. 2007 6.44% 6.29% 11.00% 8.25%
July 2007 6.85% 6.79% 11.00% 8.25%
Jan. 2008 5.79% 6.14% 10.00% 7.25%
July 2008 6.59% 6.84% 7.75% 5.00%
Jan. 2009 6.32% 6.67% 6.00% 3.25%
July 2009 4.37% 5.24% 6.00% 3.25%
Jan. 2010 4.91% 5.32% 6.00% 3.25%
July 2010 4.17% 4.74% 6.00% 3.25%
Jan. 2011 4.71% 5.74% 6.00% 3.25%
July 2011 4.50% 5.59% 6.00% 3.25%
Jan. 2012 3.82% 4.84% 6.00% 3.25%
July 2012 3.70% 4.46% 6.00% 3.25%
Sept. 2012 3.47% 4.27% 6.00% 3.25%