504 Rates Hit all-time low!


July 2020 debenture rates hit all time lows with the 20 and 25 year rates just .64% over comparable treasury market rate, yielding note rates of just over 1% prior to servicing fees (currently 1.421% for most loans approved in FY 2020).

10 year debenture (offered bi-monthly) yielded a note rate of LESS THAN 1% at .29% over comparable treasury.

These are trying times for businesses, but these programs are available at all times to provide cash flow consistency for borrowers. 

Comments

Post a Comment

Popular posts from this blog

My SBA FAQs

Even though I work for a company that provides SBA 504 loans, I am frequently asked about SBA 7a loans, particularly as many area lenders no longer have an SBA expert in-house.  So I thought I would start a blog of frequently asked questions.  This will include 504 and 7a and hopefully I'll have the stamina to update this regularly, starting now! I'll state upfront the standard disclosure that every deal and circumstance has it's own nuances and to think about the "big picture" not just the singular question.  June 27, 2022 - Primary Residence as Collateral Q:  If the bank takes a lien on a principal's primary residence, what happens if they want to move in a year? A:  Funds from the proceeds of the sale of the home would be escrowed to be used towards the acquisition of the new property with a new mortgage to secure the original loan. Big Picture:  The timing of the replacement secondary mortgage can be tricky as most "conventional" mortgage lenders...
Read more

Notes to Interim Final Rules from Economic Aid Bill and changes to Paycheck Protection Program

Image
  ECONOMIC AID ACT NOTES (82 PAGE IFR 1/6/2021) ·          Extends PPP Authorization until March 31, 2021 ·          New (first) PPP applicants can use 2020 OR 2019 records to calculate PPP loan amount ·          Authorization limit of $806,450,000,000 for 1 st and 2 nd PPP combined ·          60/40 rule still applies:   payroll/other eligible expenses (with some noted additions p. 50) o    Uninsured property damage costs related to public disturbances that occurred during 2020) o    Covered supplier costs o    Worker protection expenditures (to comply with guidance of Health and Human Services, CDC, OSHA or equivalent) o    note:   self employed – interest on loans incurred before 2/15/2020 ARE NOT ELIGIBLE FOR FORGIVENESS – see page 53) ·   ...
Read more

SBA and CDC 504 Virtual Meet and Greet

Image
Going LIVE on Microsoft Teams with SBA and other CDC colleagues for a Monday (6/29/20) Morning at 10:00 a.m. for Virtual Meet and Greet to talk all things 504. Hope you can join, hope my technology works, hope my dog doesn't bark or my kids yell "MOM!", the FEDEX guy doesn't come ... Really - don't miss it - It'll be fun ( Carlos Hernandez  promised) - and he always delivers! Call  in: 202 765 1264 Access  Code:559614371# Cut and paste entire link into your browser: https://teams.microsoft.com/l/meetup join/19%3ameeting_Y2ExMzM0ODUtMDFjOC00NjExLWFmNTctY2FkM2JlMT UzZDE3%40thread.v2/0?context=%7b%22Tid%22%3a%223c89fd8a 7f68 4667 aa15 41ebf2208961%22%2c%22Oid%22%3a%2206c8d445 8327 4671 904f 888cdef3813f%22%2c%22IsBroadcastMeeting%22%3atrue%7d
Read more