Lowest interest rate ever for SBA loans

The 20-year fixed interest rate on U.S. Small Business Administration "504" loans for commercial real estate fell this week to 5.24 percent — the lowest in history. This record low rate, which follows recent changes to increase small business access to the SBA "504" program, is a piece of good news for small businesses suffering from the contraction in credit availability.

"With the difficulties that small businesses are having in today's economy, the recent federal incentives adopted in the Stimulus Bill and a new all-time low rate for the SBA 504 loan program create a unique opportunity for small businesses to buy or enhance their facilities," said Todd Kocourek, president and CEO of Florida First Capital Finance Corp., Florida's statewide certified development company.

SBA "504" loans offer small business owners access to low interest, longterm and fixed-rate financing with only 10 percent downpayment requirements for the purchase, construction or renovation of owner-occupied commercial real estate and/or the acquisition of industrial equipment or other fixed assets. In June the SBA enacted a permanent change to the program that allows businesses to use the 504 to refinance existing loans to fund expansion. The SBA also temporarily eliminated most of the 504 program's fees which will save borrowers about $10,000 on an average loan.

"Savvy business owners throughout the country are going to take advantage of this all-time low rate, the fee reductions and new refinancing option to lower their monthly real estate payment and invest in growing their business by adding staff, space and technology," said Mr. Kocourek.

For information on the SBA or State of Florida loans, call (888) 320-5504, email info@ffcfc.com or visit www. ffcfc.com.