SBA Locks in 4.75% Loan Rate for Boring Spring
Published Date: 3/25/2025
Notice
Summary
The Small Business Administration set the Optional Peg Rate at 4.75% for April through June 2025, which helps decide interest rates on certain SBA loans. Businesses using SBA-backed loans or 504 projects will see these rates affect their borrowing costs. Lenders must also follow state rules on maximum interest rates, so some rates might be lower depending on where you live.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
Optional Peg Rate set at 4.75%
The SBA set the Optional Peg Rate at 4.75% for the April–June 2025 quarter. This rate may be used as a base for guaranteed fluctuating interest rate SBA loans, so businesses with SBA direct or guaranteed loans could see their interest calculations tied to this 4.75% rate during that quarter.
504 Project Loan Interest Rate Cap
For any Third Party Lender commercial loan that funds part of an SBA 504 project, the maximum legal interest rate is 6% over the New York Prime rate. If that 6% over New York Prime would exceed the maximum rate allowed by a State's constitution or laws, the lender must use the lower state-allowed rate.
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Key Dates
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