Current Rates
July Bond Sale Rate:
5.092%
(20 year fixed rate)

Rates have consistently been below 6% for eighteen months and have reached a new record low with the July, 2010 rate.  While spreads edged up slightly from a record low in May, Treasuries declined.  Investors are seeking high quality, low risk investments amid the volatility in the European markets, and our product provides a higher return while carrying the full faith and credit guarantee. 


     
  July 2010  
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What's Congress Doing on Fee Waivers?

The latest round of fee waivers is about to run out. SBA is now placing approved 504 loans in a “queue” and is authorizing loans as funds are available. The queue and funding process adds a few days to the approval process, but thus, far, our loans are still moving to Authorization.

Additional legislation is pending before Congress to extend fee waivers on 504 loans through Dec. 31, 2010. With mounting deficits, Congress is reluctant to pass any spending bills that are not revenue neutral or add to the deficit. We are hopeful that the incentive of job creation will lead to additional fee relief for expanding small businesses, but it’s certainly difficult to assess the outcome.

As a reminder, when fee relief stops, SBA will once again collect the ½ point bank fee!

 


Secondary Market for First Trust Loans

The new program for secondary market sales of the first trust to a 504 loan is about to be launched! The 504 loan must be funded and must have funded after Feb. 17, 2009, the bank loan must have a payment due date of the 1st of the month, and the customer must be paying via ACH. Using this program can increase the bank’s yield – guidance on pricing has been released. We’d be happy to share with our lending partners how the SMA Consortium (with Business Finance Group as your Consortium contact) can provide you with a vehicle to sell 80%, 85% or 100% of your first trust loan. Please contact Sally Robertson at 703-352-0504 with questions!

Business Finance Group Receives Awards

During the recent Small Business Week events, the Baltimore and Richmond SBA District Offices presented awards to their top lenders. Business Finance Group was recognized by both SBA offices as the top producing Certified Development Company for FY 2009. The events were exciting, we congratulate all the award winners, and we also thank SBA for recognizing their lending partners!

Closing Tip

For 504 loans approved for renovation or construction projects under ARRA (the stimulus act which provides fee waivers), increasing the loan for cost overruns is different than our normal process. We can attempt to increase the 504 loan, but in order to retain the fee waivers, the request for an increase must be placed into a funding “queue” waiting for cancellations of loans approved in the same funding tranche. If sufficient cancellations don’t occur, the increase will not be approved. However, there is a solution. The bank loan can be increased or the borrower can contribute equity to cover the cost overruns. Call us when you anticipate a cost overrun so we can work with you towards the SBA approval!

 

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