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. Market rates are allowed on the private lending portion (50% of project).
Current Rate
The effective rates of October 2025 are as follows:
- Regular 504 Program 25 year fixed rate 6.067%
- Regular 504 Program 20 year fixed rate 6.136%
- Regular 504 Program 10 year fixed rate 5.783%
Fees
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)
Bank
- Participation Fee: One time 1/2% fee to SBA on lender’s participation