SBA Info Notice 5000-865765 Peg Rates Third Quarter
Summary
SBA Information Notice, Control No. 5000-865765, effective March 20, 2025, to SBA employees, 7(a) lenders, certified development companies and third party lenders, on the 3rd quarter optional peg rate, the direct interest rate and the maximum interest rate of a third party lender loan for a 504 project. It states that the interest rate on Section 7(a) Direct Business Loans is 5.75 percent for the fiscal quarter beginning April 1, 2025. That rate is for information only, with no direct funds available.
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Full text
SBA Information Notice
TO: All SBA Employees,7(a) Lenders, Certified CONTROL NO.: 5000-865765
Development Companies and Third Party Lenders
SUBJECT: 3rd Quarter Optional Peg Rate, Direct EFFECTIVE: March 20, 2025
Interest Rate and Maximum Interest Rate of a Third
Party Lender Loan for a 504 Project
The purpose of this Notice is to inform SBA employees and Lenders that the interest rate on
Section 7(a) Direct Business Loans is 5.75 percent (5.75%) for the fiscal quarter beginning
April 1, 2025. (Information only – no direct funds available at this time.)
The Optional Peg Rate for fluctuating interest rates on guaranty loans is 4.75 percent (4.75%) for
the April – June quarter of FY 2025.
Pursuant to 13 CFR 120.921(b), the maximum legal interest rate for any Third Party Lender’s
commercial loan which funds any portion of the cost of a 504 project (see 13 CFR 120.801) shall
continue to be 6% over the Prime rate and shall remain in effect until changed. If the
aforementioned Third Party Lender’s commercial loan rate of 6% over the Prime rate exceeds
the maximum legal interest rate permitted by the constitution or laws of a given State, then the
maximum interest rate for the Third Party Loan will be the rate permitted by the constitution or
laws of the given State.
Questions
Questions concerning this Notice may be directed to Darrel Eddingfield at (202) 516-6676 or
Darrel.Eddingfield@sba.gov.
John A. Miller
Deputy Associate Administrator
Office of Capital Access
PAGE 1 of 1 EXPIRES: 3/1/26
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
Federal Recycling Program Printed on Recycled Paper
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