Type:Notice
Citation:89 FR 106719
Reading Time:less than a minute
The Small Business Administration (SBA) has announced the Optional Peg Rate for the first quarter of fiscal year 2025, which is set at 4.38%. This rate serves as the base for determining interest rates on certain SBA loans featuring variable rates. Additionally, the maximum legal interest rate for Third Party Lender's commercial loans for 504 projects can be up to 6% above the New York Prime rate, subject to state law limitations.
Simple Explanation
The Small Business Administration (SBA) has set a new basic interest rate of 4.38% for some special loans they offer, and they allow other lenders to charge up to 6% more than a key bank rate unless state rules say otherwise.