Debenture Rates

Current Debenture Rates

Traditional 504 Rates *
25 Year rate: 6.73% (January)
20 Year rate: 6.75% (January)
10 Year rate: 6.57% (January)

Refinance 504 Rates *
25 Year rate: 6.75% (January)
20 Year rate: 6.77% (January)
10 Year rate: 6.59% (January)

*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 1/2025 *per NADCO)