Finnection's Guide to Understanding and Accessing SBA 504 Loan Rates

1. Finnection's Guide to Understanding and Accessing SBA 504 Loan Rates If your small business is planning to purchase commercial real estate, invest in long-term equipment, or expand operations, an SBA 504 loan might be your best financing option. These loans offer long-term, fixed-rate financing and are specially designed to support economic growth among small and mid-sized businesses. However, navigating the loan landscape can be overwhelming — especially when it comes to understanding and securing the best SBA 504 loan rates. That’s where Finnection comes in. This guide will help you understand how SBA 504 loan rates work and how Finnection simplifies the process of getting matched with the right lender. What Are SBA 504 Loans? Small Business Administration (SBA), is tailored for business owners who need to finance fixed assets. These may include: Purchasing commercial real estate Building new facilities Renovating existing properties Buying heavy equipment or machinery 50% from a conventional lender (e.g., a bank or credit union) 10% down payment from the borrower The highlight? The CDC portion of the loan offers fixed, below-market interest rates— which can significantly reduce your long-term borrowing costs. Understanding SBA 504 Loan Rates 1. Base Rate The base interest rate is typically tied to U.S. Treasury yields, which fluctuate depending on economic conditions. 2. Fees and Premiums There are also fees associated with the SBA guarantee, servicing, and CDC operations. 3. Fixed vs. Variable Rates The CDC portion of the loan always carries a fixed interest rate, typically for 10, 20, or 25 years. However, the 50% portion from a bank or private lender might be either fixed or variable, depending on the lender. 4. Rate Trends

2. As of early 2025, SBA 504 effective rates have ranged between 6.0% and 6.75%, depending on loan terms and market conditions. How Finnection Helps You Access the Best SBA 504 Loan Rates Understanding SBA 504 loan rates is just the beginning — the real challenge is finding a lenderwho will offer you the most competitive rate. That’s where Finnection's smart platform becomes your best ally. 1. Smart Lender Matching Finnection uses intelligent data analysis to match your business with SBA-approved lenders that are most likely to offer you favorable terms. Instead of blindly applying to multiple banks, Finnection helps you target the right lenders, increasing your chances of approval and getting better rates. 2. One Application, Multiple Offers With Finnection, you fill out just one streamlined application, and the system sends your details to multiple vetted lenders. This saves you time and keeps your credit profile safe from unnecessary hard inquiries. 3. Transparent Rate Comparisons Finnection provides up-to-date information on SBA 504 loan rate trends, allowing you to compare offers from different lenders with clarity. You can confidently assess which lender offers the best long-term value for your business. 4. Expert Guidance If you're unsure about the terms or want help negotiating with lenders, Finnection offers expert support to walk you through the process — from paperwork to approval. Why SBA 504 Loans Through Finnection Make Sense Here’s the bottom line: The SBA 504 loan is one of the smartest financing options available for businesses seeking long-term investment — and securing the best rate could save your business tens of thousands of dollars over the life of the loan. But to make the most of this opportunity, you need access to the right lenders and clear insightsinto loan rates and terms. That’s exactly what Finnection delivers.