SBA Lowers Borrower Fees; Interest Rates Drop

The SBA 504 program continues to offer superior interest rates compared to market interest rates. For loans approved in the past year and funded in the October 2006 sale, the effective interest rate was 6.547% for a 20-year term. For new loans approved after October 1, 2006, the SBA has dropped the borrower fee from 0.192% to 0.018%. The decline of the borrower fee will have a dramatic impact in lowering the interest rate on a 504 loan even further.