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Small Business Lending Insider
October 2019
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Base
Rate
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Standard
Effective |
Refinance
Effective |
Effective |
| SBA 504 10-yr |
1.88% |
3.56% |
3.60% |
September 2019 |
| SBA 504 20-yr |
2.08% |
3.46% |
3.50% |
October 2019 |
| SBA 504 25-yr |
2.22% |
3.54% |
3.57% |
October 2019 |
| SEDA-COG PIDA |
2.75% |
N/A |
N/A |
Through Dec. 2019 |
| SEDA-COG RLF |
4.25% |
N/A |
N/A |
Through Dec. 2019 |
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SBA 504 Rates See Slight Uptick
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For the first time in nearly a year, the SBA 504 20-year and 25-year rates edged slightly higher over the previous month. The previous declines resulted in record low rates for the program. While September's rate might indicate a bottoming out of rates, the spread between Prime and the 504 is still significant, so there's still time to take advantage of these long-term fixed rates.
SBA 504 loans can be used for owner-occupied commercial real estate projects - land and building purchase, renovations, and new construction. The 10-year 504 loan can be used to acquire production equipment. Small businesses may also potentially use a 504 loan to refinance their commercial and/or equipment debt as part of a larger financing deal.
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Marina Pusateri dba Steven R Neff Funeral Home
Millheim, PA - The Neff family had been in the funeral business since shortly after the Civil War, when William Neff started-up a funeral home in Howard, PA. The third generation of the family, G. Gilbert Neff, started the Millheim location in 1930. The Howard location was sold in 1996, ending over 100 years of family ownership at that location. In 1961, George Neff took over the Millheim location from his father (G. Gilbert) and in 1986 it was sold to Steven R Neff, the fifth generation of the family. Steven owned the funeral home until 2014, when he sold the business to Anthony and Marina Pusateri, thus ending the final family ownership of funeral homes in Centre County even though the business still carries the Neff name.
Anthony and Marina operated the funeral home until Anthony passed away suddenly in 2016. Since then, Marina has owned and operated the funeral home. Including Marina, the funeral home employs two full-time people, with other part-time help depending on the level of activity.
Working with Steve Stanko,
Vice President - Commercial Relationship Manager at Susquehanna Community Bank,
Marina obtained an SBA 504 loan to help refinance her existing mortgage and build a mortuary on to the funeral home to replace the one that had to be torn down in early 2017 due to excessive mold. The funeral home had been using other local funeral home mortuaries to continue providing service to the local community, however; in order to continue operating as a funeral home, Marina needed to have a preparation room on her own property. Not only
was Marina able to refinance her existing debt for better terms, she also received a low, fixed interest rate for 20 years through the use of a SBA 504 loan.
According to Felicia Shultz, the Office Manager at the funeral home who assisted Marina with the details of the financing, "
Everyone was great to work with and since I was in over my head in terms of not
understanding all the paperwork, Melodee Mensch and John Reichard were of great help
to me and very patient I might add. A big "thank you" to everyone who assisted us with our loan."
Susquehanna Community Bank is a full-service financial institution that understands that community banking is built on trusted relationships and convenient technology. Susquehanna's dedicated employees deliver exceptional service tailored to the individual business and personal needs of their customers, including commercial, agriculture, mortgages, treasury management, savings and investment advisory solutions. Susquehanna Community Bank adds value beyond personal service by offering customers convenience through technology. Customers can bank with Susquehanna from anywhere, at any time with their convenient online solutions such as their online mortgage and consumer loan applications, online deposit account application, online banking with bill pay, mobile banking with mobile deposit, Allpoint® ATM network of 55,000+ ATMs worldwide, and remote deposit capture for our business customers. For more information, visit
www.scb.bank.
Steve Stanko on the impact of the SBA 504 loan for this small business: "This area had no other local funeral home alternatives. With the help of the experienced staff at SEDA-COG, who walked us through the SBA 504 process, Susquehanna Community Bank was able to offer a financing package necessary to keep this long-standing funeral home in business. This is truly how SBA programs, delivered through certified development corporations like SEDA-COG, are supposed to work."
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John Reichard, Senior Relationship Manager II, recently attended the National Association of Development Companies (NADCO) Annual Meeting in Nashville, Tennessee. The event saw the gathering of around 600 people including SBA 504 lenders from across the country as well as representatives from the SBA. As always, it was an excellent opportunity to network with other 504 lenders, learn best practices, receive important training, and get the latest updates on the 504 program (including some potential future enhancements to make the loans even better!).
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John Reichard was also honored to attend the recent groundbreaking ceremony for the Nittany Express expansion project in State College, Centre County, PA hosted by the Penn State Small Business Development Center (SBDC). SEDA-COG will be providing an SBA 504 loan to assist with the building construction project that will provide
additional parking and customer services for the University Park Airport. SEDA-COG is partnering with Kish Bank on the financing. Penn State SBDC assisted the owner with his business plan and with local contacts needed to get the project off the ground.
Pictured above: John Peterson - Penn State SBDC, John Reichard - SEDA-COG, Kristie McKnight - Kish Bank, Omar and Carol Ahmed - Owners, and Richard Sarfert - Kish Bank.
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SEDA-COG's Business Finance Department serves the entire state of Pennsylvania and
rural counties in Maryland and West Virginia
for the
SBA 504 Program
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For PIDA and SEDA-COG loans, we cover
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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Director, Business Finance Department
P: 570-524-4491
C: 570-898-6596
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Senior Relationship Manager II
P: 570-524-4491
C: 570-850-0195
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