Small Business Loans - New Loans Available At Record Low Interest Rates

The U.S. Small Business Administration (SBA) recently announced that their 10-year and 20-year 504 loan programs, which provide long-term, fixed rate financing to America’s small businesses, are currently available at the lowest interest rates offered since the inception of the loan program. The SBA 504 loans are made available to small businesses by the SBA to help them to purchase commercial real estate and expensive equipment and machinery, which allow them to expand their businesses and create jobs in their local communities. These 504 loans are made available to small businesses through Certified Development Companies (CDCs), which have been strongly promoting the 504 loans to potential borrowers lately, encouraging them to take advantage of the low interest rates on offer.

Over 680 small businesses are reported to have taken out 504 loans since the beginning of this month, capitalizing on the low interest rates being offered. The 504 loan offered by the SBA is especially advantageous to small businesses, as they only require a relatively small down payment (typically just 10%), which means that the small businesses are able to retain more working capital for operating expenses and inventory. Chris Crawford, the President of NADCO, the national CDC trade association, commented on the opportunity presented by 504 loans to small businesses: “These incredibly attractive rates for long-term, fixed rate financing present a real opportunity for small business owners to realize their dreams of owning their own buildings or acquiring the expensive equipment or machinery they need right now.”