CURRENT 504 LOAN RATES
6.28% 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 May 8, 2007)
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504 UNDERWRITING TIP:
504 PROGRAM ENVIRONMENTAL STANDARDS
Environmental reviews are challenging for both Self-Help and you, our lending partners. Although we advise that you work with us to address issues quickly, here are some tips to help understand 504 program requirements and avoid common problems.
Although not required, it's a good idea to address the need for an environmental report early on. It's smart to work with Self-Help to have the SBA certify the environmental analysis before closing the loan. We want to ensure that the SBA won't require further investigation before the loan is committed to. This early attention protects you and your borrowers from getting stuck with properties marred by environmental liabilities.
The SBA's Sacramento Loan Processing Center (SLPC) has tightened the standards for appraisals and environmental reviews, and now requires us and other Certified Development Companies (CDCs) to do more analysis of them. We usually rely on the appraisals and environmental reports you provide. Any issues raised will cause delays and may result in higher borrower contributions, more environmental investigation, or major project restructuring.
New SBA standards require additional conditions on the Phase I environmental investigations. These standards include additional experience and/or training qualifications for the analysts performing the screening; a deeper background check on property uses; and additional interviews with the property owners and sometimes adjacent owners.
Top Reasons for SLPC Environmental Screen Outs:
1. The address on the environmental investigation doesn't match that on the Authorization
2. No owner signature or date on the environmental questionnaire
3. Incomplete property information on the environmental questionnaire
Conclusion:
We anticipate revised environmental standards yet again when the SBA completes and releases an updated SOP on environmental issues, and will keep you informed. We look forward to working with you early on to avoid pitfalls environmental standards may pose. You can find detailed guidelines on CDC standards at www.naggl.org/cdcstandards. |
BORROWER SUCCESS STORY UPDATE
Native Angels Homecare & Hospice Win National Award
Owners: Bobbie Ghaffar and Lesa Jacobs
Lending Partner: GE Capital
Location: Lumberton
Project: Construction of new 36,000 square-foot headquarters building; $7.2 million
Community Impact: Rural development, Lumbee Native American women-owned
We featured Native Angels' success story in our November issue. The sisters who founded and run the home healthcare company, Bobbie Ghaffar and Lesa Jacobs, recently were named the SBA N.C. Small Business Person(s) of the Year. On April 24, they accomplished and even greater feat. At an SBA Small Business Week 2007 event on Capitol Hill they were announced as the 2006 SBA National Small Business Person(s) of the Year. This is was the first time that an N.C.-based firm has won the award on a national level. Native Angels was selected from among 53 state winners.
SBA Administrator Steven Preston said the women epitomized the mix of hard work, risk-taking, and creativity that characterizes American entrepreneurship. "These are qualities that make small businesses such a powerful force in the American economy," Preston said.
Please join us in congratulating Bobbie and Lesa, as well as our lending partner, GE Capital. For more information on national Small Business Week, including award winners' bios, visit
www.sba.gov/sbw.
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| LENDERS SPOTLIGHT: SELF-HELP APRIL 2007 SBA 504 APPROVALS |
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Thank you for making APRIL a productive month!
LENDER LOCATION
INDUSTRY
PROJECT
COST
Bank of Commerce Mint Hill Pizza Pub $2,400,000
Crescent State Bank Sanford Physical Therapy Practice $725,000
First Citizens Brunswick Podiatry Medical Practice $291,000
First
Citizens Wilmington Barbershop $165,000
First South Bank Goldsboro Motel $1,250,000
Lexington State Bank Thomasville Metal Shelving Manufacturer $1,519,000
TOTAL $6,350,000
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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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