August SBA Lenders Update Highlights:

SBA 504 Rate Falls to 6.75%

The 20 year 504 debenture rate was 5.31%, (lowest on record).
20-year, fixed rate 504 loans funded this month at 6.75%.
The 10-year rate is 6.59%.

Other 504 rates:

20 year effective rate (1st 5 years): 6.62%

20-year Note Rate: 5.39%

(See the article below for a fuller explanation of 504 rates and pricing.)

Florida First Capital Up by 72% – Fastest Among Top CDCs

The July results are in: Total 504 loans by Florida First Capital in fiscal year 2002 are up by 72%, tops among the 50 largest U.S. Certified Development Companies. Full text.

Determining the 504 Funding Rate

The rates rate for the 504 Loan Program are determined on a monthly basis through a complex process involving the marketing, selling and trading of U.S. Government guaranteed debentures. Understanding this process can give knowledgeable lenders a competitive edge. Full text.

SBA Announces Plans to Reorganize, Streamline

The Small Business Administration recently announced a five-year reorganization plan that will consolidate loan processing in a few regional centers and make marketing of its programs the primary responsibility of its 70 district offices. The agency said the changes will make SBA “more customer-focused” and “more cost-effective.” Full text.

Spotlight: Defining a “New” Business for 504 Loans

Understanding whether or not a business is “new” by SBA standards can make a significant difference for borrowers and lenders. Generally, if a business has been in operation for fewer than two years, it is considered new. 504 loans for new/startup businesses require larger (by 5%) borrower contributions.
Full text.

Update on SBA Budget: Senate Committee Cuts 7(a) Funding

On July 18, the Senate Appropriations Committee approved a budget that cuts 7(a) program funding in half next year to $4.85 billion. Full text.

Florida First Capital, the State of Florida's Certified Development Company, provides financial assistance to small businesses in conjunction with the U.S. Small Business Administration and private sector lenders. From Pensacola to Key West, Florida First Capital provides new and growing businesses with long-term, fixed-rate financing for major fixed assets, such as real estate and equipment. For more information visit our website at ffcfc.com or call us at 1-888-320-5504 or email us at: info@ffcfc.com

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