The loan rate is determined by market at the sale of a participation in a pool of government guaranteed securities. The rate is fixed for the term of the SBA/FoundationCapital loan. Generally, the rule of thumb in projecting a rate is the 10 year Treasury rate, plus 210 base points. Market rates are allowed on the private lending portion (50% of project).

Current Rate

The 20 year effective rates as of January 2018 are as follows:

Regular 504 Program 20 year fixed rate 4.64%

Regular 504 Program 10 year fixed rate 3.83%


The fees listed below are based on the SBA portion of the loan and can be financed with the loan borrower:
•CDC Processing Fee: Up to 0.0150% of the 504 portion of the project

•Other Program Fees: 0.0025% Funding Fee

•0.005% (approximately – this fee is a complicated calculation)

•Participation Fee: One time 1/2% fee to SBA on lender’s participation