Rate information: 20-year rates Dropped 1 basis points. The 20-year fixed rate is now 4.50%. The 10-year rate remained at 4.38%. SBA 504 rates have been below 5.0% for 39 months in a row, that's over 3 years. Overall rates were stable this year; fluctuating between 4.50 and 4.69 percent, this was a little surprising considering we had such dramatic change in the White House. Additionally, Fed Chair Janet Yellen indicated all year that we should expect to see rates rise. In 2018 we should expect rates to increase modestly due to inflation related to the expected increase material costs because of the reconstruction due to Hurricanes and Fires and the expected cost of labor increasing with California's higher minimum wage in 2018, as well as labor unions asking for more raises.
We had 3 SBA approval last month one each with Citizen's Business Bank, Premier Valley Bank and Central Valley Community Bank. Thank you to all of our participating banks for your referrals.
New information the 504 Program may be adding a 25-year debenture: The regs for the 25-year debenture should be published by December 29, 2017 and the program should be implemented and accepting applications by March 30, 2018. This would give us 10-year, 20-year and 25 year debenture terms. We do not know yet if there will a different rate charged for the 25-year term. More details to follow later this year.
Real estate inventories continue to be very low in all areas for commercial properties, especially for owner-users. Smaller functional properties are very scarce. The SBA 504 Real Estate Program continues to be a great way to finance the acquisition and/or construction commercial real estate for owner-users. 504 loans can be used to finance up to 90% of the cost of your real estate project.
For additional information about our loan programs please contact Cal Cain at (559) 227-1158
Congratulations, Brittany!
Cen Cal Business Finance Recent Funded Projects
Showroom and Office
North Fresno
Land and Building Purchase
TOTAL PROJECT
FINANCING
$2,000,000
Light industrial Building
Central Coast
Land & Building Purchase
TOTAL PROJECT
FINANCING
$350,000
Cen Cal Business Finance Group - Participating Banks
2012 - December 2017
Loan Approvals by Fiscal year - Participating Banks
Lender Name
2012
2013
2014
2015
2016
2017
2018
Bank of America
Bank of the Sierra
1
2
5
4
Bank of the West
2
1
3
3
BBVA Compass
1
2
1
California Bank & Trust
1
2
1
Central Valley Community Bank
2
1
1
1
4
Citizens Business Bank
1
1
Community West Bank
1
1
Fresno First Bank
1
1
1
4
3
JPMorgan Chase Bank, NA
1
2
1
1
Premier Valley Bank
10
4
4
7
5
1
1
Umpqua
3
Security First Bank
1
1
Suncrest Bank
1
Tri Counties Bank
2
2
U.S. Bank N.A.
1
1
1
Union Bank, N.A
2
1
1
2
United Security Bank
Valley Business Bank
1
1
1
Wells Fargo Bank, N.A.
1
1
1
1
Westamerica Bank
1
3
3
2
1
Zions First National Bank
1
Founders Community Bank
1
Fiscal Year Totals
21
16
11
28
26
25
3
Annual Leaders are in Bold
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Cen Cal Business Finance Group
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