A 504 borrower never has one interest rate — they have two: the bank note’s negotiated rate on ~50% of the project, and the CDC/SBA note’s fixed effective rate on ~40%, which is set once a month when the SBA sells its debentures. This page explains how that CDC rate is built (debenture rate + three ongoing fees), what current published figures look like, and what the blend means for your real cost. It is a maintained data page: the rate table is re-checked on the monthly debenture cycle, and every figure carries its source month. Program choice itself is decided on the hub; payment modelling is in the 504 calculator.
General information, not a loan offer. Rates below are the most recent CDC-published figures found at this page’s review — 504 rates reset monthly; always confirm the current month with a CDC before relying on them.
| CDC note term | Effective rate (latest published) | Source |
|---|---|---|
| 25 years | ~6.98% | MBFC current rates sheet (October 2026) |
| 20 years | ~6.98% | MBFC (October 2026) |
| 10 years | ~6.61% | MBFC (October 2026) |
| For scale across the year: the underlying debenture rates for July 2026 priced at 5.04% (25-yr), 5.01% (20-yr), 4.69% (10-yr) per sba504.loans — the effective rate you pay is that debenture rate plus the ongoing fees below, which is how mid-5s debentures become high-6s effective rates. NerdWallet’s summary range for 504 money — roughly 5% to 7% — spans exactly this machinery. |
Per sba504.loans’ itemisation, the CDC effective rate = debenture rate + ongoing fees:
The bank’s 50% note is not SBA-capped: it is a negotiated commercial rate — Bay Street Lending puts typical bank-portion pricing around 7–9% currently, frequently fixed for 5–10 years with a 20–25-year amortization and a balloon. This is why the blended rate — Bay Street estimates typical blends at 7.0–8.0% — is the only cost figure that describes a whole 504 deal.
The CDC note’s rate is fixed at the debenture sale for the life of the loan — SBA.gov describes the rate as pegged to an increment above the market rate on 10-year U.S. Treasury issues at funding. Once funded, rate markets can do anything; your CDC payment never moves. (The bank note is another story — see its balloon, above.)
What is the current SBA 504 interest rate? For the CDC portion, the latest CDC-published effective rates are in the table above (~6.98% for 25- and 20-year terms, ~6.61% for 10-year, October 2026, MBFC) — every CDC rate sheet (MBFC, Growth Corp, Statewide CDC) leads with this month’s figures because they reset at each debenture sale.
Why does an SBA 504 loan have two different interest rates? Because it is two loans: sba504.loans states it plainly — “you will not have a single interest rate”: the bank prices its 50% commercially, while the CDC/SBA 40% carries the fixed debenture-based rate.
Is the SBA 504 rate fixed for the whole term? The CDC portion, yes — fixed at funding for the life of the loan, based on the 10-year Treasury (NerdWallet). The bank portion follows its own note (often a 5–10-year fix with a balloon).
What fees are built into the 504 effective rate? The ongoing stack itemised by sba504.loans: SBA 0.209% + CDC servicing 0.625% + CSA 0.1%, on top of the debenture rate — plus one-time financed fees (0.25% funding, 1.5% CDC processing, closing costs).
What will my blended 504 rate be after the bank portion? Typically 7.0–8.0% blended (Bay Street Lending’s estimate) at current pricing — your exact blend falls out of your two note sizes and rates in the calculator.
General information, not a loan offer. Sources: MBFC current rates (October 2026); sba504.loans rate anatomy and July 2026 debenture rates; Growth Corp and Statewide CDC rate sheets; SBA.gov 504 loans page; Bay Street Lending blended range; NerdWallet (questions/facts as published). Rate table reviewed 2026-10-22; monthly update scheduled.