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Both 10 and 20-year debentures were sold this month. The effective SBA 504 20-year March debenture rate is is 5.60%, and the effective SBA 504 10-year debenture rate is 4.59%.
On
March 2, 2010 the Senate approved a bill to extended the stimulus
benefit for the SBA 504 program through March 28, 2010. The first
article below details what was approved in the bill.
Save the date! The 12th Annual Michigan SBA Lender's Conference will be held on Tuesday, March 23. See more details below.
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Stimulus Update
President
Barack Obama signed legislation Tuesday extending until March 28 the
U.S. Small Business Administration's ability to provide small business
loans that are enhanced with special provisions of the American
Recovery and Reinvestment Act (ARRA), including a higher guarantee of
SBA- backed loans and a waiver of loan fees normally paid by borrowers.
The
bill reauthorizes the expired 90-percent guarantee on the SBA's 7(a)
loan program through March 28th, and funds this higher guarantee and
eliminates borrower fees for both the 7(a) and the 504 loan program
with a $60 million appropriation.
Please remember that the borrower must obtain an authorization under the Recovery Act to qualify for the fee waivers. After
March 28th we can still submit applications under the Recovery Act, but
the loan application will be put into a loan queue until stimulus money
becomes available.
There
are currently bills in both the House and Senate that address
additional funds for both the fee waivers and the higher guarantee
percentage to continue through the end of 2010. These bills also
contain language to increase the maximum debenture to $5 million ($5.5
million for manufacturing projects) and to enable the 504 program to be
used temporarily for re-financing of debt on eligible fixed asset
projects. We will keep you informed as these bills progress further.
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12th Annual Michigan SBA Lender's Conference
Mark you calendars now for Tuesday, March 23, 2010 at the Kellogg Center in East Lansing.
The
annual Michigan SBA Lender's Conference will feature leading experts in
SBA lending. Workshops include: Advanced Lender Roundtable, SBAExpress, Utilizing
the Secondary Market, SBA loan liquidation process and the "Ten Tabs"
system, Basics of Servicing SBA Loans, and of course, updates on the
SBA 504 Loan Program.
Complete conference information and registration will be available in a few weeks.
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"Financing Growing Businesses in Michigan Since 1981"
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