August 26, 2014
By Bob Coleman
Editor, Coleman Report
NADCO’s Small Business Lending Report shows that August’s debenture rate of 2.88 percent remained well below the 12-month average, maintaining a borrowers market for small business owners seeking commercial real estate and equipment financing. This underscores the current value of a 504 loan ate for up to a 20-year fixed-rate term.
This month’s effective interest rate (the all-in cost to a borrower) is also near historic lows, at 4.96%.
The National Association of Development Companies is the trade association of SBA lenders including Certified Development Companies, nonprofit companies that have been certified by the SBA to provide financing for small businesses under the SBA 504 Program.
NADCO represents nearly 270 CDCs, serving all 50 states. In 2013, the industry provided $5.1 billion to nearly 8,000 U.S. small businesses.