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Volume: 6 Issue: 5 May 2016
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SBA 504 20-year Effective Rate for May Remains Stable
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NADCO, the trade association for the nation's Certified Development Companies (CDCs), reports that the effective interest rate for the 20-year debentures for May rose slightly to 4.32%, up from 4.31% in April. The debentures that funded this month's 20-year 504 loans were sold to investors at an interest rate of 2.27%, up from last month's sale of 2.26%.
The 4.32% effective rate marks the 10th month that the 20-year rate has been below 5%.
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To learn more about
the SBA 504 loan program for owner-occupied real estate or equipment financing in Pennsylvania visit
www.sedacogldc.org
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Loans approved in the month of April
The following loans were approved by the respective funding sources in April.
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| Type |
County |
Amount
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Source
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| CNC Machining |
York |
$212,100
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SBA 504
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Webinar: Financing a Small Business
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John Reichard, Director of the Business Finance Department at SEDA-COG, had the honor of presenting a webinar on Public Sector Financing Partners for Small Businesses as part of the State of PA's Small Business Week.
You can check out the YouTube video below to see the presentation.
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SEDA-COG 2016 Small Business
Stimulus Plan
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SEDA-COG has reduced the cost of borrowing for an SBA 504 loan to further assist small businesses with the financing of their expansion needs.
SEDA-COG will cover half of the 0.5% fee on the bank loan involved in the financing package for SBA 504 loans approved by the SBA this year. For example, for a $1 million expansion project, borrowers would save $1,250. For much larger projects, the savings could be thousands of dollars.
For more information about this SBA 504 fee reduction or to learn more about the SBA 504 program for small businesses in Pennsylvania, visit
www.sedacogldc.org or contact the Business Finance Department at 570-524-4491 or
[email protected].
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Earn SBA 504 Referral Fees
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Do you know of a small business who is looking to purchase equipment or buy, construct, or renovate a building and needs at least $300,000 of financing? If you do, SEDA-COG will provide you up to $2,500 for any company that closes on an SBA 504 loan through SEDA-COG as a result of you making a referral to us. Click
here
for a simple Fact Sheet on the SBA 504 program to see who may qualify. If you would like to discuss a potential project, how the referral fee works, or learn more about the 504 program, give one of our loan officers a call at 570-524-4491.
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TEAM Loans to Reduce Down-payment
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A Telecommunications, Equity, and Marcellus (TEAM) loan through SEDA-COG can help reduce a borrower's already low down-payment requirement when combined with another SEDA-COG loan in the financing of a project. For example, if the borrower's normal down-payment with one of SEDA-COG's loan programs is 10%, adding a TEAM loan to the financing may reduce the down-payment to 5%.
In order to use a TEAM loan with an SBA 504 loan, the project must involve more than one use of funds (i.e. real estate costs and equipment costs). That restriction does not apply to TEAM loans matched with other SEDA-COG financing.
Click
here for more information about the TEAM loan.
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Want to know more about the SBA 504 loan program including eligibility, benefits to the bank and borrower, and other important information? Then check out the Blog section of our website
here.
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SEDA-COG serves an 11-County area in Central Pennsylvania including Centre, Clinton, Columbia, Juniata, Lycoming, Mifflin, Montour, Northumberland, Perry, Snyder, and Union Counties.
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Business Finance
