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Interest Rate SBA Loans Low

FOR IMMEDIATE RELEASE           

Alyssa L. Patton

Great Falls Development Authority

Investor Relations Director                                     

Phone: 406.771.9029

alpatton@gfdevelopment.org

 

Interest Rate on SBA Loans Declines to Record Low

 

GREAT FALLS, MT – March 17, 2009 – The Small Business Administration’s (SBA) 504 loan program is currently providing long-term, fixed rate financing for commercial real estate at the lowest interest rate since the program’s inception. 

 

The SBA 504 loan program is a long-term financing tool for economic development within a community to start, build and grow businesses. This program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings.

 

The April debentures that funded this month’s SBA 504 loans were sold to investors at an interest rate of 4.31%.  This low rate, coupled with the new fee reductions provided by the Congressional stimulus bill, led to an effective interest rate – including servicing fees – of only 5.25% for this month.

 

The SBA’s lending partners, Certified Development Companies (CDCs) are busy working with small business borrowers who are taking advantage of this record low interest rate to finally purchase or build their own facilities. Great Falls Development Authority has assisted with local business that have applied for and received 504 loans since 2005.

 

“The 504 Program is a very useful economic development finance tool because it helps small businesses grow, expands the community tax base, and builds relationships as the program requires the participation of the business owner, a bank, and the CDC,” said Sheldon Bartel, Loan Officer at Great Falls Development Authority.

 

Chris Crawford, NADCO President commented, “This is truly an historic opportunity for access to long term capital for small businesses right now.  The low rate that the 504 debentures sold for this month is added to the stimulus bill fee reductions and the continuation of the elimination of the SBA’s borrower fee for this year.  All these factors make the interest rate for SBA 504 loan the lowest it has ever been for small business borrowers.”

 

To learn more about SBA 504 loans, contact Sheldon Bartel or Mary Ann Kovacich at Great Falls Development Authority, 406.771.9026.  Visit Financial Services and Recently Funded Projects for more infomration on our program.

 

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