Commercial Real Estate

The effective SBA 504 20-year February debenture rate is is 5.55%.  The effective SBA 504 10-year January debenture rate is 4.91%.  Ten-year debentures are only sold every other month.

In early February the Obama Administration announced a new proposal to expand the 504 Loan program to temporarily allow straight refinancing of existing debt.  A summary of the article with a link is below.

Save the date!  The 12th Annual Michigan SBA Lender’s Conference will be held on Tuesday, March 23.  See more details below.

Refinance Update

The Obama Administration announced several proposals to help small business gain access to capital early this month.  Two of the proposals will directly affect the SBA 504 program: temporary ability to refinance existing debt and an increase to the limits on SBA 504 loan amounts.

The refinance proposal under the SBA 504 program will allow refinancing of small business owner-occupied CRE loans that are maturing in the next few years. Under this new proposal, borrowers with either existing 504 loans or conventional CRE loans could apply for refinancing through the 504 program.

Also part of this proposal includes extending the fee relief until the end of the fiscal year (September 30, 2010).

The president also re-iterated his proposal to permanently increase the limits on some of SBA’s most popular loans. The proposal includes the following increases:

The proposal would increase 504 loans from $2 million to $5 million for standard borrowers (supporting a total project of $12.5 million), and from $4 million to $5.5 million for manufacturers (supporting a total project of $13.75 million).

EDF is optimistic that all of the proposals will be approved soon.  However, at this time they are only proposals.  See the link below to read the entire article regarding all SBA proposed changes.

Proposed changes to SBA programs

12th Annual Michigan SBA Lender’s Conference

Mark your calendars now for Tuesday, March 23, 2010 at the Kellogg Center in East Lansing.

The annual Michigan SBA Lender’s Conference will feature leading experts in SBA lending.  Workshops include:  Advanced Lender Roundtable, SBAExpress, Utilizing the Secondary Market, SBA loan liquidation process and the “Ten Tabs” system, Basics of Servicing SBA Loans, and of course, updates on the SBA 504 Loan Program.

EDF Contacts

Ph.  616-459-4825
Fax 616-458-5736
TF  888-330-1776

Sandy Bloem
Executive Director
sandy@growmichigan.com

Bradd Pierce
Loan Officer
bradd@growmichigan.com

Gary Witkowski
Relationship Manager
gary@growmichigan.com