CURRENT 504 LOAN RATES
6.68% fixed for 20 years for real estate projects, including acquisition, new construction and major renovation
6.36% fixed for 10 years for heavy-duty equipment and machinery
(as of June 8, 2007)
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UNDERWRITING TIP: SBA SMOOTHES OUT 504 CLOSING PROCESS Effective Aug. 1, the SBA will complete a longstanding program to make 504 closing packages more uniform and consistent - and thus easier for CDCs and lenders alike to use in getting 504 loans funded more efficiently.
What's New: Streamlined Features
- The SBA is adopting new versions of several documents - in particular, certifications from lenders, CDCs and borrowers - that will allow CDCs to submit fewer documents for SBA review on each closing package.
- The CDCs will have a clearer idea of what constitutes a complete closing package, and will be able to systematize the closing process more effectively.
- The SBA's review process will be less intense on each loan, allowing their counsel to move through loans swiftly.
In this first phase of the streamlining process, there won't be a lot of direct paperwork reduction - as CDCs will still need to collect most of the same information they have in the past. The industry is still working with the SBA to explore ways to reduce paperwork while still producing appropriate protections for the SBA's and CDC's interests.
What this Means for You
The SBA's move toward streamlining will make it far easier to set expectations for these loans, and pave the way to consistent requirements in the process.
Among the documents that will change fairly dramatically are the two documents that lenders must provide regarding the status of their loans: the Third Party Lender Agreement, and the Interim Lender Certification.
If you would like to review copies of these new forms to see what impact they might have on your certification process, e-mail us at:
504loans@self-help.org. We'll be happy to send you a sample copy for your review. |
BORROWER SUCCESS STORY
Owners: Neil and Kathy Grigg
Lending Partner: Interim Financing: BB&T; Permanent Finaincing: Bank of N.C.
Location: Thomasville
Project: Construction of 65,000 square-foot building; $2,240,000
Community Impact: 69 (59 low-income) jobs maintained; 21 new jobs created (low-income)
click here.
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NEWS: SBA ANNOUNCES NEW PATRIOT EXPRESS LOAN INITIATIVE
On June 13 the SBA added to its portfolio of financial, procurement and technical assistance programs, a loan product aimed at the military community: the Patriot Express Loan Initiative. The program is similar to the SBA Express program, but features enhanced guarantee and interest rates. Veterans, Reservists and National Guard members as well as their spouses and widows or widowers of veterans are among the group slated to receive assistance. They may use the program to start-up or expand their businesses; buy equipment, inventory or real-estate; or assist with working capital needs. The SBA guarantees more than $1 billion annually in loans to veteran business owners.
For more information, please visit
www.sba.gov/patriotexpress.
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Did You Know?
More than 30 percent
of small-business owners report working an average of at least 10 hours daily,
compared to only 19 percent of the general population, according to the monthly
Discover Small Business Watch index.
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| LENDERS SPOTLIGHT: SELF-HELP MAY 2007 SBA 504 APPROVALS |
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Thank you for making MAY a productive month!
LENDER LOCATION
INDUSTRY
PROJECT
COST
Aquest Bank Cornelius Tea, light food service, gift shop $475,000
BB&T Greensboro Convient Store $1,600,000 SunTrust Bank Raleigh Full-service furniture restoration $280,000
SunTrust Bank Mebane Cabinetry & millwork $2,230,000
TOTAL $4,585,000
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CONTACT US
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Call the Self-Help loan officer nearest you to discuss a project or learn more about how you can use an SBA 504 loan to help your small business customers with expansion needs.
Charlotte NC Region: Dale Harrold and Ralph Ansell, Self-Help, Great Aunt Stella Center, 926 Elizabeth Ave., Suite 302, Charlotte, NC 28204 * 800-394-7428
Sandhills NC Region: Allen Cofiori, Self-Help, 100 Hay St., Suite 300, Fayetteville, NC 28301 * 800-774-7966
Northeastern NC Region: Gerry Blood, Self-Help, 301 South Evans St., Suite 306, Greenville, NC 27858 * 800-893-9669
Southeastern NC Region: Louis Rogers, Self-Help, 272 N. Front St., Suite 300, Wilmington, NC 28401 * 877-559-4284
Triad NC Region: Anna Tefft, Self-Help, 122 N. Elm St., Suite 1015, Greensboro, NC 27401 and 500 West Fourth Street, Suite 200, Winston-Salem, NC 27101 * 800-269-7426
Central NC Region: Joe Osowski, Self-Help, 301 W. Main St., P.O. Box 3619, Durham, NC 27702 * 800-476-7428
Western NC Region: Tom Byers, Self-Help, 34 Wall St., Suite 704, Asheville, NC 28801 * 800-229-7428
Contact our SBA 504 Program Director, Jim Overton, at 919-956-4473.
Or contact our SBA 504 Marketing Officer, Jamie Miyares, at 919-956-4670. |
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