SBA 504 loan rates
October 2026 pricing (October 8, 2026) · next pricing November 5, 2026
504 loans finance owner-occupied buildings and long-life equipment. A bank lends about 50%, a Certified Development Company (CDC) lends about 40% backed by the SBA, and you put in about 10%.
| 504 debenture term | Effective fixed rate |
|---|---|
| 25-year | 6.97% |
| 20-year | 6.97% |
| 10-year | 6.59% |
Rates are effective rates including ongoing SBA and CDC fees. Manufacturing, food supply chain and rural projects priced lower in October: 6.74% for 25 years, 6.73% for 20 years and 6.30% for 10 years.
20-year rate, last six months
The 20-year rate rose almost a full point from May to October 2026, tracking Treasury yields rather than the prime rate.
Your real rate is a blend
Only the CDC portion carries the 504 rate. On a $2 million building with a bank first mortgage at, say, 7.5% on 50% and the 25-year 504 rate on 40%, your blended rate on the borrowed money is about 7.26%. Ask the bank and the CDC for both rates before comparing a 504 loan with a 7(a) or conventional loan.
Questions
What is the SBA 504 rate today?
The October 2026 pricing set effective fixed rates of 6.59% for 10-year, 6.97% for 20-year and 6.97% for 25-year debentures. Manufacturing, food supply chain and rural projects priced slightly lower, at 6.74% for 25 years.
Is the 504 rate fixed?
Yes. The CDC/SBA portion is fixed for the whole term once the debenture sells. The bank's first mortgage is priced separately and may be fixed or variable.
When are 504 rates set?
Once a month, at the SBA's debenture sale. The next pricing date is November 5, 2026. Your rate locks at the sale your loan is included in, not when you're approved.
Sources: SBA 7(a) terms, conditions and maximum variable rates; Federal Reserve H.15 selected interest rates (bank prime loan rate); October 2026 SBA 504 debenture pricing, as published by CDCs; SBA FOIA 7(a) and 504 loan-level data.