Now that we have covered the length of SBA 504 loans, we can turn our attention to the interest rate.  Specifically, what the rates are based on and when the rates are set for a loan.  The SBA 504 loan is a bond-based loan program.  Meaning that the money that funds a 504 loan does not come from the U.S. Treasury, but from the sale of a bond offering to investors seeking a low-risk investment backed by the SBA and the Federal Government. - more