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Current Rates
20-year rate: 6.07%
10-year rate: 4.71%
EDF Contacts
Ph. 616-459-4825
Fax 616-458-5736
TF 888-330-1776
Sandy Bloem
Executive Director
sandy@growmichigan.com
Bradd Pierce
Loan Officer
bradd@growmichigan.com
Gary Witkowski
Relationship Manager
gary@growmichigan.com
Seth Beals
Relationship Manager
seth@growmichigan.com
Kecia Flynn
Portfolio Manager
kecia@growmichigan.com
Abbey Byrne
Closing Manager
abbey@growmichigan.com
Jill Dean
Administrative Assistant
jill@growmichigan.com
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February's SBA 504 20-year effective rate is 6.07%. Interest rates are slightly higher this month on signs of growth in the U.S., including a drop in the unemployment rate to a 21-month low in January. 10-year bonds were sold last month with an effective rate of 4.71%. (Rates may vary slightly based on approval date.)
In this edition - REFINANCING RULES ANNOUNCED - FINALLY! See below.
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After the announcement on September 27, 2010, the long awaited 504 Loan Program Debt Refinancing Regulations are expected to be published tomorrow.
Some key points:
- Loan must be coming due for renewal on or before December 31, 2012
- There will be an ongoing guarantee fee of 1.043% on the total unpaid balance of the debenture.
- Substantially all (85% or more) of the proceeds of the loan being refinanced must have been used for 504 eligible purposes.
- Loans must have been current for the past year
- Debt must have been incurred not less than two years prior to the date the application is received by SBA
- Third Party Loan and 504 loan combined may not be more than 90% of the fair market value of the fixed assets securing the loan.
- Loan Structure will be:
- Lender - not less than 50%
- SBA 504 - not more than 40%
- Borrower - not less than 10%
- Borrower's contribution may come from cash, existing equity, or equity in other fixed assets, supported by an appraisal.
- May not refinance loans with an existing federal guaranty (7(a), USDA, or 504)
These are a few of the key requirements. Please contact EDF to determine if your ballooning loan is eligible.
A full presentation from SBA can be viewed here:
504 Loan Program Debt Refinancing
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"Financing Growing Businesses in Michigan Since 1981"
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