Good news! Beginning October 1, 2017, a key component of
what determines the SBA 504 effective rate was reduced!
For SBA 504 loans approved on or after October 1st, the ongoing
guarantee fee paid by SBA borrowers has decreased from 0.697%
to 0.642% of the outstanding balance of the loan. This fee is
included in the full term effective rate that is quoted to borrowers.
So what does this mean for you and your clients? The December
504 funding rate (for loans approved prior to October 1st) is
4.566%. That same rate with the fee reduction is 4.499%.