Worcester Business Journal

wbjournal.com | November 2, 2026 | Worcester Business Journal 17 ment for a new fitness center expected to open on Grove Street at year's end. A growing home-based business was also able to expand into the commu- nity. "Despite the rates, we're still seeing activity. We haven't noticed any partic- ular industry pulling back," she said. e WBDC offers below-market interest rates and long-term financing to businesses through its 504-loan program, administered on behalf of the SBA. In October, its rates were 7.21% for 25 years, 7.16% for 20 years and 6.58% for 10 years. For manufacturing, corresponding rates were 7%, 6.95% and 6.37%. e goal for the service-based com- panies, Escobar said, is to move away from leasing to buying and owning properties. She said many businesses reach out to WBDC because landlords keep raising rents, frustrating them with how much money they pay out. "Using 504 (loan program) helps them get their own space," Escobar said. e program works in partnership with local bank lenders or credit unions, helping businesses finance owner-occupied real estate, purchase machinery or equipment, buy land and construct buildings. A 10% down payment is required compared to 20% to 30% required by many banks. For the balance, SBA contributes 40% and the bank 50%, according to Escobar. All but cannabis-related businesses qualify as long as the applicant owns 51% of the property and has a bank on board, she said. Peter Staiti, senior vice president and commercial regional execu- tive at Rockland Trust's Worcester Commercial Lending Center, shares Escobar's sense of opti- mism. "Overall, the economy is relatively healthy and companies continue to do well," he said He and Escobar identified man- ufacturing as a sector that remains particularly strong. Staiti said that no matter where interest rates fall, industries still must replenish and maintain their machin- ery to operate effectively. For example, Staiti cited the center's clients in the transportation sector, who require rolling stock — whether vehicles or trailers. "at certainly is a type of asset that normal wear and tear requires that physical upkeep and is mission critical to carry out their operations." Jonah Glickman specializes in industrial brokerage and investment properties at NAI Glickman Kova- go & Jacobs. He and his brother Max, also at the firm, recently analyzed how much interest rate increases (from 0.5% to 10%) would impact purchasing power for the same asset, including an investment versus own- er-occupied property. ey found that every 1% increase in interest rate equates to a 6% de- crease in purchasing power. Glickman said for real estate purchases specifi- cally with traditional financing, local banks are "floating the interest rate until a week before closing. … at doesn't give buyers or sellers a lot of confidence up until that point." Interest rates can fluctuate by 20 basis points per day, Glickman noted, resulting in a "drastic decrease" in a buyer's ability to pay what was agreed upon months before. Oen, the result is that the deal is re-traded. Although the effects on real estate are "all along the same lines," Glick- man said, the differences rest more with whether the purchase is of a building strictly to use raw land or new land and buildings for develop- ment. "Relatively high" construction costs along with fluctuating interest rates "haven't really helped develop- ment," Glickman said. Glickman expects more interest-rate increases in the short term to contin- ue to affect the real-estate industry. "ere's already been a slowdown on strict investment versus the owner-oc- Peter Staiti, Rockland Trust BANKING & FINANCE F O C U S Guidance and support from a bank that cares. That's our promise. Every moment with our clients matters. At Fidelity Bank, we see every interaction as an opportunity to listen, care, and provide clarity – so you can spend less time worrying about your financial life and more time focusing on the things that matter most. Call our Client Care Team, visit a Banking Center near you, or learn more online. 800.581.5363 FidelityBankOnline.com continues on page 18 Jonah Glickman, NAI Glickman Kovago & Jacobs

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