On Friday, September 27, 2024, SBA published a Notice in the Federal Register [89 FR 79327] announcing that the Agency’s Optional Peg Rate for the first quarter of FY 2025 (October 1 – December 31, 2024), will be 4.38 percent. The Optional Peg Rate (13 CFR 120.214) is a weighted average cost of money to the government for maturities similar to the average SBA direct loan and may be used as a base rate for guaranteed fluctuating interest rate SBA loans.
The Notice also provides information regarding the maximum legal interest rate for the Third Party Lender’s commercial loan which funds any portion of the cost of a 504 project (13 CFR 120.801). That rate will be 6% over the New York Prime rate or, if that exceeds the maximum interest rate permitted by the constitution or laws of a given State, the maximum interest rate will be the rate permitted by the constitution or laws of the given State.
