SmallBusinessNewz

The Small Business Administration's (SBA) 504 loan program is providing long-term, fixed financing for the purchase of commercial real estate at one of its lowest interest rates in history.

The SBA's lending partners, Certified Development Companies (CDCs) are working with small business borrowers who are taking advantage of this current low interest rate to purchase or build new facilities.

NADCO, the trade association for the nation's Certified Development Companies (CDCs), reports that the interest rate for a 20-year SBA 504 loan continued to fall to a low of 4.93% this month. The August bond sale to investors that funded SBA loans was sold at a rate of 3.52%. This low sale price resulted in an effective interest rate - including fees - of only 4.93% for borrowers this month. This interest rate is one of the lowest since the program began in 1986.

The SBA's 504 loan program provides long-term, fixed rate financing for commercial real estate, and has funded nearly $60 billion in loans to growing small businesses over the past 24 years.

 Not only are the interest rates low right now, but one best aspects of an SBA 504 loan is the low down payment required by a borrower.  The down payment is typically only 10%.   CDCs across the country are helping small business borrowers who are taking advantage of these record low interest rates to purchase, build or expand their own facilities.

" A commercial loan below 5% is an incredible rate for 20-year, fixed-rate money," said Jean Wojtowicz.

"When you consider the drop in the price of commercial real estate and the inventory currently on the market, small businesses have a real opportunity to expand or buy their first building right now."