For the first time in nearly a year, the SBA 504 20-year and 25-year rates edged slightly higher over the previous month. The previous declines resulted in record low rates for the program. While September’s rate might indicate a bottoming out of rates, the spread between Prime and the 504 is still significant, so there’s still time to take advantage of these long-term fixed rates.

SBA 504 loans can be used for owner-occupied commercial real estate projects – land and building purchase, renovations, and new construction. The 10-year 504 loan can be used to acquire production equipment. Small businesses may also potentially use a 504 loan to refinance their commercial and/or equipment debt as part of a larger financing deal.