September 2018
Issue 16
Guaranty Fee Change for the
SBA 504 Loan Program is
Better for Borrowers
SBA 504 Effective Rates for September 2018
25-year – 5.29% / 5.34% Refi
20-year – 5.25% / 5.30% Refi
10-year – 5.25% / 5.33% Refi
The new SBA Guaranty Fee Structure effective October 1, 2018 is beneficial for the borrower!
SBA will restructure their guaranty fees on SBA 504 loans approved on or after October 1, 2018. The upfront guaranty fee will increase by .5%. This fee is financed in the gross debenture and is not a cash expense for the borrower.
However, the on-going guaranty fee that is included in the fixed monthly interest rate will DECREASE by .274%. This means the interest rate would be 5.02% based on September’s rate instead of 5.29%.
On a $1,000,000 loan, the upfront guaranty fee will be $2,000 (or .5%). But, the on-going guaranty fee will DECREASE by .274% which will reduce the borrower’s effective interest rate.
At today’s interest rate (5.29%) the loan payments would be roughly $68,402 per year (based on 25 year term). The loan payments at the lower on-going fee (5.02%) would be $67,758.
This is a savings of $643 per year!
The borrower will recoup the upfront guaranty fee in roughly 3 years, taking advantage of the savings in interest over the remaining life of the loan.
Contact your local NW Business Development Officer for more details.
National Small Business Week
Awards – 2019
Submit Your Nominations Today
The U.S. Small Business Administration is now accepting nominations in all categories for its 2019 National and District Small Business Week Awards, including the annual Small Business Person of the Year.
“This is a great opportunity to recognize those small businesses that have contributed significantly to their local communities, developed creative products or made advances with innovative technologies,” SBA Administrator Linda McMahon said.
Submit your Nominations at: https://goo.gl/E4T6NL
Business Development Officers
Eastern Washington/
Northern Idaho
Evan Heriot
eheriot@nwbusiness.org
Central Washington
Lisa Vincent
lvincent@nwbusiness.org
Western Washington
Elizabeth Rusnak
erusnak@nwbusiness.org
Elizabeth Stevens
estevens@nwbusiness.org
Mark Beppler
mbeppler@nwbusiness.org
Southwestern Washington/
North Oregon
Jim Bight
jbright@nwbusiness.org
Mike Miller
mmiller@nwbusiness.org
August’s Loan Fundings
NWBDA funded 5 new
projects for the total amount of $6,771,988.88
August’s Loan Approvals
NWBDA approved 9 new
projects for the total amount of $22,963,673.00
In the month of August,
NWBDA helped
create 49 new jobs
in the local communities
info@nwbusiness.org
www.nwbusiness.org
(509) 458-8555
(800) 540-1748 (Toll Free)
Achieving BIG Dreams for SMALL Businesses