SBA 504 loans carry a fixed rate of interest, which is determined at the time the debentures are sold.

10 year terms are allowed for equipment purchases and 20 year terms for real estate; loan terms are based on the type of assets financed, with the requirement that the useful life of the assets must equal or exceed the loan term. 

The private lender's loan must carry a minimum term of 7 years for projects involving machinery and equipment, and 10 years for projects involving real estate.

In either case, the private lender must provide a "comfort letter" to ELCDC/SBA that any balloons on the bank's portion of the financing will be refinanced, barring any late payments or adverse change in financial condition of the small business concern.

The private lender's loan may be fixed or variable, with a rate that is "legal and reasonable."