 |
|
|
Volume: 6 Issue: 6 June 2016
|
|
SBA Releases Guidelines for Refinancing
|
The SBA has released the guidelines for the reauthorization of the 504 Debt Refinancing Program. The SBA will begin accepting applications on June 24, 2016.
The following are some of the eligibility requirements to refinance existing debt through the SBA 504 loan program:
- Borrower must be in business for at least 2 years.
- Loan(s) to be refinanced must have been incurred at least 2 years ago.
- At least 85% of the proceeds of the loan(s) to be refinanced had to be originally used for eligible fixed assets.
- Borrower has been current on all payments of the loan(s) for the past 12 months.
- May include the financing of eligible business expenses as part of the refinancing.
- Loan(s) to be refinanced cannot be subject to a guaranty by a Federal agency (i.e. SBA 7(a), SBA 504, or USDA) and cannot be a Third Party Loan which is part of an existing SBA 504 project.
For more information on whether a loan might qualify for an SBA 504 Refinancing project, visit
www.sedacogldc.org or contact one of our staff.
|
|
 |
|
SBA 504 20-year Effective Rate for June Falls
|
NADCO, the trade association for the nation's Certified Development Companies (CDCs), reports that the effective interest rate for the 20-year debentures for June fell to 4.23%, down from 4.32% in May.
The debentures that funded this month's 20-year 504 loans were sold to investors at an interest rate of 2.18%, down from last month's sale of 2.27%.
The 4.23% effective rate marks the 12th consecutive month that the 20-year rate has been below 5%.
|
To learn more about
the SBA 504 loan program for owner-occupied real estate or equipment financing in Pennsylvania visit
www.sedacogldc.org
.
|
|
|
| Loan |
Rate |
Comment
|
| SBA 504 |
4.19% |
June 10-year
|
| SBA 504 |
4.23% |
June 20-year
|
| SEDA-COG RLF/PIDA |
3.25% |
Through June 30, 2016
|
| SEDA-COG TEAM |
4.00% |
Through June 30, 2016 |
|
|
|
|
|
Loans approved in the month of May
The following loans were approved by the respective funding sources in May.
|
| Type |
County |
Amount
|
Source
|
| Precast Concrete Mfg. |
Snyder |
$150,000
|
EDA RLF
|
| Precast Concrete Mfg. |
Snyder |
$100,000
|
ARC RLF |
| Fitness Center |
Luzerne |
$201,250 |
SBA 504 |
|
|
|
|
SEDA-COG 2016 Small Business
Stimulus Plan
|
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
finance@seda-cog.org.
|
|
|
|
Earn SBA 504 Referral Fees
|
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.
|
|
|
|
TEAM Loans to Reduce Down-payment
|
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.
|
|
|
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.
|
|
|
SEDA-COG serves an 11-County area in Central Pennsylvania including Centre, Clinton, Columbia, Juniata, Lycoming, Mifflin, Montour, Northumberland, Perry, Snyder, and Union Counties.
|
|
|
|
|
|
|
|
|
Business Finance
