On Feb. 26th, BFG President, Sally Robertson, testified on behalf of the National Association of Development Companies on the pending CRE crisis and the state of small business lending. Robertson urged the committees to pass H.R. 4302 which would grant temporary refinancing of commercial mortgages for owner occupied properties under 504 as well as provide for a significant increase in 504 loan amounts. The committees were also asked to extend the 504 fee waivers. 504 loan volume has increased by 50% nationally in FY 10 compared to the same 4 months of FY 09 which can principally be attributed to the fee waivers.
Secondary Market Access for 504 First Trust Loans
A consortium of CDCs, including Business Finance Group, have organized to help our first trust lending partners take advantage of SBA’s new 504 first lien pool guarantee program. The consortium, called Secondary Market Access (SMA) is partnering with a major U.S. investment bank to purchase 85% participating interests of individual loans in order to form eligible pools. SMA will source transactions, package, audit, and facilitate funding on behalf of the Pool Originator. Business Finance Group will be the point of contact for interested sellers and will provide loan pricing bids, consultation, and assistance.
First trust lenders may sell 85% of a first trust to a 504 loan that was funded after Feb. 17, 2009 and before Feb. 16, 2011. A premium will be paid for each loan, and the lender will retain servicing for a half point fee on the SOLD portion of the loan. Any loan sold must have a 1st of the month due date and each loan payment must automatically be deducted by ACH. Additional options are available for the sale of 80% (should the seller prefer to also be a Pool Originator) or 100% if the seller prefers not to retain any of the loan.
SBA is 30-60 days from being ready to issue pool guarantees; however, SMA is ready to begin assembling the first pool. If you have funded first trust loans with 504 loans funded within the dates noted above, call your BFG loan officer to discuss
Muscular Dystrophy Fund Raising
Sally Robertson was “arrested” on Feb, 24th and taken to the “MDA Jail” where her “bail” of $3,200 was to be posted. The “bail money” is to help local kids with MD attend a special summer camp. Business Finance Group topped the list by raising over $3,600, and we’d like to thank all of our contributors.
Our staff contributed over $1,000 thanks to Denny Kleppick who donated his beard! During a lunch event at the office, we paid to shave off Denny’s beard with the funds going to MD. Click here to see the pictures!
Our corporate contributors were Walker Title Company (thank you Alan Walker!) and Sevilla, Saunders, Huddleston and White (thank you Larry Schonberger!). Individual contributors were: Jim Baird, Judy Barral, David Canfield, Lucy Davis, Blair Horne, Phil Keating, Ted Lizas, Mary Mansfield, Jeff Milnes, Daryl Miller, Mary Miller, Valerie Robbins, Mandy Robertson, Patrick Robertson, Steve Suite, David Summers, and Joe Tyssowski. Thank you all so much for helping with our fund raising efforts – I know the kids who are attending camp (and their families) as the result of these donations appreciate it a great deal!
A Sad Note...
We were all saddened to learn of the untimely passing of Greg Motheral. Greg spent many years with Virginia Commerce Bank and was most recently with John Marshall Bank. Over the years, Greg has been a top 504 First Trust Lender many times and donated many hours to serving on our loan committee. We will all miss his ready smile, kind nature, and generous spirit. Our thoughts and prayers are with his family.
