The Small Business Administration (SBA) has announced its new Optional Peg Rate for the April to June quarter of 2025, which is set at 4.75 percent. This rate is used as a base for determining interest rates on certain SBA loans with fluctuating rates. Additionally, for a 504 project loan, the maximum allowable interest rate from a Third Party Lender is capped at 6% above the New York Prime rate, unless state laws or constitutions dictate a lower maximum.
Simple Explanation
The Small Business Administration (SBA) sets a new interest rate of 4.75% for some loans—and if a bank wants to loan money to help build something special, like a new building, their interest can be up to 6% higher than the New York bank's big number, unless a different rule says otherwise.