6.88% fixed for 20 years for real estate projects, including acquisition, new construction and major renovation.

7.45% fixed for 10 years for equipment and machinery.

(Rate as of August 9, 2006)

After a brisk hike up to 7.25% in July, rates have trended back down as the 10-year Treasury rates have come back down from earlier fears of steadily increasing inflation. The rates are remaining relatively consistent for now, and we hope that the long-term trends will be positive.

In the last few years, we have all seen a radical reshaping of the demographics and backgrounds of North Carolina's small business community.

Increasingly, we run into borrowers who are not yet U.S. citizens, or in fact are not planning to become citizens. Yet they legally reside here, and have every right to begin a small business. Many of them will also make excellent customers for your institution.

If you're looking at financing a business that is all or partially owned by individuals who are not citizens, there are several special underwriting issues you should consider:

1. Get us involved early in the game. If we have owners and/or guarantors who are not citizens, we need to verify early on whether there's a way for us to work with them. Also, we need to get copies of the documentation that governs their residency, and verify it with the U.S. Citizenship and Immigration Services (USCIS, formerly known as the INS). These background checks can take two to four weeks, so we need to get started early in the game. If we process these forms early in the underwriting process, then we can move forward with SBA approval faster.
   
2. Individuals with "Lawful Permanent Residency Cards" (i.e. "green cards") easily may qualify for SBA lending. Borrowers with temporary work permits have a harder time qualifying. However, if a person with such temporary status is a co-owner with a citizen or permanent resident, he/she would qualify for an SBA loan.
   
3. In some cases, even foreign-owned businesses can qualify for SBA loans. There are special processing considerations - for instance, the company would need to be an existing business, and would need to have seasoned management consisting of U.S. citizens who have long-term commitment to the company - but it is feasible for us to consider 504 financing for these companies.
   
4. The SBA specifically prohibits making loans to businesses owned by individuals lacking legal residency status. Again, our early involvement can help you determine if there may be barriers to working with a business you're considering.

As the profile of small businesses in your community continues to diversify, let us help you pinpoint opportunities to provide financial assistance to some small businesses that might seemingly might not fit your lending parameters. Give us a call, and we'll walk you through the process.

We're pleased to announce that Jamie Miyares has joined the Self-Help staff as our new 504 Marketing Officer. Jamie will be working out of headquarters office in Durham, but will be assisting us with marketing and sales efforts on a statewide basis.

Jamie grew up in High Point, and has both undergraduate and graduate degrees from Wake Forest. Prior to getting her MBA degree, she worked in public relations and corporate communications for both BB&T and Wachovia.

We expect Jamie to work closely with our lending partners, as well as doing outreach to some of our key small business networks of minority and women business owners.

If you need assistance planning training for lenders or others in your institution, you may contact either Jamie or your Self-Help 504 local loan officer. Jamie can also help you with any events at which you can could use a Self-Help 504 loan officer to participate.

You can contact Jamie at (919) 956-4670, or e-mail her at Jamie.Miyares@self-help.org.

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 Region: Dale Harroldand Ralph Ansell, Self-Help, Great Aunt Stella Center, 926 Elizabeth Ave., Suite 302, Charlotte, NC 28204 * 800-394-7428

Fayetteville 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 215, Wilmington, NC 28401 * 877-559-4284

Triad/Greensboro Office: Anna Tefft, Self-Help, 122 N. Elm St., Suite 1015, Greensboro, NC 27401 * 800-269-7426

Triad/Winston-Salem Office: Anna Tefft, 500 West Fourth Street, Suite 200, Winston-Salem, NC 27101 * 336-478-2611

Triangle Region: Joe Osowski, Self-Help, 301 W. Main St., PO 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 jim.overton@self- help.org.

Email :: 504loans@self-help.org

Visit Us Online :: http://www.self-help.org/504loans