Interest Rates

NADCO, the trade association for the nation’s Certified Development Companies (CDCs), reports the following SBA 504 fixed interest rates. The rates below are those quoted by NADCO. The Base Rate is the base P&I rate of the loan. The Effective Rate includes three servicing fees built into the monthly payment over the entire term of the loan and the closing costs added to the loan. The Effective Rate is not an APR. Click here for an explanation of how the interest rates are calculated. Interest rates are typically set on the first Tuesday of a month, with loans funding on the second Wednesday of the month.

The rate for a particular loan is not set until the project as defined is complete and the SBA 504 loan closes and funds. Once the rate is set it is fixed for the life of the loan.

Base Rate

Effective Rate

Effective Rate
20-Year Loan
January 20234.81%6.29%6.31%*
December 20224.56%6.04%6.06%*
November 20224.98%6.23%6.24%
October 20224.89%6.13%6.15%
September 20224.10%5.34%5.36%
August 20223.65%4.89%4.91%
July 20223.81%5.05%5.07%
June 20223.89%5.13%5.15%
May 20223.82%5.06%5.08%
April 20223.38%4.62%4.63%
March 20222.53%3.77%3.78%
February 20222.22%3.45%3.47%
January 20221.84%3.07%3.09%
* Estimate as no bonds were sold
25-Year Loan
January 20234.91%6.31%6.33%
December 20224.71%6.11%6.13%
November 20225.13%6.53%6.32%
October 20225.04%6.22%6.23%
September 20224.26%5.44%5.45%
August 20223.80%4.98%4.99%
July 20223.93%5.11%5.12%
June 20224.01%5.19%5.20%
May 20223.94%5.12%5.13%
April 20223.50%4.68%4.69%
March 20222.75%3.93%3.94%
February 20222.42%3.60%3.61%
January 20222.04%3.22%3.23%
10-Year Loan (sold every other month)
January 20234.60%6.17%6.19%*
November 20224.70%6.27%6.29%
September 20223.78%5.33%5.35%
July 20223.43%4.97%4.99%*
May 20223.39%4.93%4.95%
March 20222.30%3.82%3.87%*
January 20221.58%3.04%*3.10%
* Estimate as no bonds were sold