September 17, 2012 8:31 am
4.28% is the most recent 20 year rate for the SBA 504 program. As most of you know, this rate is fixed for 20 years, if held to full term.
Based on the nature of these debenture loans, the published offered rate changes monthly. However, it is safe to say that the fixed nature of the rate, once established, could not be found from a traditional lender.
The 504 program gets somewhat of a bad rap, because of the detailed paperwork required for application, but in many instances, it is one of the few ways to get a lender to participate in a hotel loan. If you are considering hotel acquisitions, a 504 loan might be in your future.