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November's SBA 504 20-year effective rate is 5.09%. 10-year bonds were also sold this month with an effective rate of 4.04%.
Remember that the on-going borrower fee has gone up by 36 basis points
for all future approvals in the new fiscal year beginning with October
1, so this has increased the effective rate. (Rates may vary slightly
based on approval date.)
In
mid-October EDF had the opportunity to attend the National Association
of Development Companies (NADCO) regional meeting. Staff members were
able to learn more about the refinance option (regulation is not out
yet) along with several other changes for the year. One of the changes
we would like to share is the ability to now finance mini-warehouses
and self-storage facilities using the SBA 504 program. More detail is
in the article below.
As
stated above the regulations have NOT come out yet for the
refinancing. However, this can be a good time to review any existing
real estate loans that may qualify for the low, fixed interest rate
that a borrower could benefit from by refinancing via the SBA 504
program. EDF staff is available to answer any questions and assist in
this process.
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