Current Debenture Rates
Traditional 504 Rates *
25 Year rate: 3.81% (August)
20 Year rate: 3.66% (August)
10 Year rate: 3.80% (July)
Refinance 504 Rates *
25 Year rate: 3.85% (August)
20 Year rate: 3.70% (August)
10 Year rate: 3.84% (July)
The above Rates are for Loans approved and funded after October 1st, SBA has reduced the annual service fee.
*Above rates are the all-in rates, which are calculated by adding the note rate and servicing fees.
Historical Debenture Rates
The SBA 504 Loan Program offers a low, fixed rate based on a debenture bond sale. This occurs once a month for 20 & 25-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.
Historical Rates are the all-in rates, which are calculated by adding the note rate and servicing fees.
Effective Rates can be found at the National Association of Development Companies [NADCO] web site.
(Last updated 8/2019 *per NADCO)