Current interest rates for SBA 504 loans as of February, 2023
10-year, standard SBA 504 project
20-year, standard SBA 504 project
25-year, standard SBA 504 project
Previously, 504 debt refinance was only available for complete refinancing of buildings and equipment, or could be used on a limited basis as part of an expansion project. The amount of refinancing that can now be included with an expansion project has doubled. The new rules also allow for refinancing federally guaranteed loans that were used for an eligible project.
For example, businesses that used an SBA 7(a) loan to purchase equipment or real estate can now refinance that debt using the 504 program to enjoy a lower, fixed interest rate.
City of Racine, WI — After renting offices and working from home for a year, Attorney David Patton, owner of Patton Law Office – a boutique law firm serving Racine and Kenosha Counties – purchased and renovated the building at 1636 Taylor Ave in Racine, Wis.
David and his wife, Tamara, worked with the Racine County Economic Development Corporation’s (RCEDC) finance team, Business Lending Partners (BLP) to access the capital needed for the purchase. Patton Law Office was such a young company; it did not qualify for most conventional commercial lending programs.
BLP’s Loan Officer, Wesley Walsh said the company fit the criteria for one of its local Racine County loan programs because of the elements of job creation and community benefit.
“Patton Law Office was a newer business that did not have the capital to pursue traditional bank financing,” said Walsh. “We were able to access dollars from a privately funded loan program to help the Pattons purchase a great building within the community they serve.”
FINANCIAL UPDATES DELIVERED RIGHT TO YOUR INBOX