Debenture Rates

Current Debenture Rates

Traditional 504 Rates *
25 Year rate: 6.05% (December)
20 Year rate: 6.07% (December)
10 Year rate: 5.62% (November)

Refinance 504 Rates *
25 Year rate: 6.06% (December)
20 Year rate: 6.08% (December)
10 Year rate: 5.63% (November)

*Above rates are the all-in rates, which are calculated by adding the note rate and servicing fees.
For Fiscal Year 2026, rates for Manufacturers are approximately 20 basis points lower than the traditional 504 rates.

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 12/2025 *per NADCO)

20-Year Debenture Rates: January 2015 – Present