The entire financial services industry, whether commercial, residential or consumer has all seen an increase in interest rates recently. After an unprecedented and sustained low interest rate environment, the Fed signaled they may slow or stop their Bond Buyback Program. The industry responded by raising rates. Hopefully, this reaction sufficiently covered industry concerns and rates […]
The SBA 504 Loan Program offers a low, fixed rate based on a debenture bond sale. This occurs once a month for 20-year loans and every other month for 10-year loans.
Interest rates on Bay Colony’s 504 loans are set by the market. The interest rate on a borrower’s 504 loan is fixed to the current market rate at the time the SBA sells a debenture bond to fund the loan.
Servicing fees based on principal are rolled into the monthly payment.
The interest rate established by the bank/first mortgage is negotiated directly with the business owner.