SBA 504 Loans used for the acquisition of real estate typically have a term of 20 years, while machinery and equipment loans typically have a term of 10 years. The SBA 504 Loan has a low interest rate, which is fixed for the entire term of the Loan. The interest rate is based on a spread over the current market rate for 10-year U.S. Treasury issues and is determined when the loan funds.
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