Small Business Lending Insider

September 2019
Latest Rates

Base
Rate
Standard
Effective
Refinance
Effective

Effective
SBA 504 10-yr 1.88% 3.56% 3.60% September 2019
SBA 504 20-yr 1.98% 3.36% 3.39% September 2019
SBA 504 25-yr 2.14% 3.46% 3.49% September 2019
SEDA-COG PIDA 3.00% N/A N/A Through Sept. 2019
SEDA-COG RLF 4.25% N/A N/A Through Sept. 2019
Staff News
Douglas Wilburn has joined SEDA-COG as its new Director of the Business 
Finance Department.  Doug  has 10 years of  experience leading districts' and bank stores' sales and service teams to achieve revenue and acquisition goals.  At Mifflinburg Bank & Trust, he exceeded annual loan and deposit goals as Business Development Officer (2016 to present).  As District Manager, he helped Wells Fargo Bank to rank No. 2 in sales and service in the Mid-Atlantic Region (2011 to 2013).  He was the Branch Manager III from 2015 to 2016 at Santander Bank; the Multi-Branch Manager III at Capital One Bank from 2013 to 2015; and worked at Wachovia Bank from 2008 to 2011.  Douglas earned his BS in Business Administration with a Marketing concentration and a minor in Accounting from Elon University in North Carolina in 2003.

Doug will oversee the operations of the Business Finance Department as well as perform loan officer duties. 
SBA 504 Rates Continue to Fall

The interest rate for the 20 and 25-year SBA 504 loans hit yet another historic low for the month of September.  The effective fixed rate for a
20-year loan fell to 3.36%, while the fixed rate for a 25-year loan fell to 3.46%.  Not to be overlooked, the interest rate for refinancing is also experiencing record lows, with a 20-year rate of 3.39% and a 25-year rate of 3.49%. 

SBA 504 loans can be used for owner-occupied commercial real estate projects - land and building purchase, renovations, and new construction.  The 10-year 504 loan can be used to acquire production equipment.  Small businesses may also potentially use a 504 loan to refinance their commercial and/or equipment debt.

For more information on SBA 504 financing through SEDA-COG, visit www.sedacogldc.org.

SBA Extends 504 Rural Initiative Program
On August 28th, the SBA published a notice in the Federal Register announcing the extension of the 504 Loan Program Rural Initiative Pilot Program (504 Rural Pilot).  The original two-year period for the 504 Rural Pilot was July 19, 2018 through July 20, 2020.  It has now been extended until September 30, 2021.

The 504 Rural Pilot allows SEDA-COG to provide SBA 504 financing to businesses located in designated rural counties of Maryland and West Virginia in addition to our Pennsylvania statewide authority.

For a list of eligible rural counties, you can download an Excel spreadsheet.  Counties marked as mostly rural and completely rural are eligible under the 504 Rural Pilot Program.

New SBA 504 Fees Announced
Each year SBA reviews certain fees payable to SBA by 504 borrowers to determine if any of those fees need to be adjusted to cover the estimated subsidy costs of the 504 loan program.  Fees are effective for the entire fiscal year to maintain the estimated costs of the program, unless subsequent Congressional acts modify the program's subsidy costs.

For new SBA 504 loans approved during FY2020 beginning October 1, 2019 through September 30, 2020, the SBA has lowered the annual service fee for loans other than Refinance Without Expansion loans from 0.368% to 0.3205% of the outstanding balance of the loan.  For Refinance Without Expansion loans, the annual service fee has been reduced from 0.395% to 0.322%.

The reduction of these fees will result in lower effective rates for small businesses than loans approved during the previous fiscal year.

Export Seminar
The SEDA-COG Export Development Program will be holding an Import Compliance Seminar c0-sponsored by the Penn State Small Business Development Center on October 16th from 9:00 - 12:00 at 200 Innovation Blvd., State College, PA.

According to Noelle Long, Director of the Export Development Program, "I mporting can be just as complicated as exporting.  Given the current state of duties, trade wars, and sourcing issues, this is an important topic that companies need to stay on top of."

For more information you can check out the flyer for the event.  Registration is available through this link.

About Us

SEDA-COG's Business Finance Department serves the entire state of Pennsylvania and  rural counties in Maryland and West Virginia  for the   SBA 504 Program .
 
For PIDA and SEDA-COG loans, we cover  an 11-county area in central Pennsylvania including Centre, Clinton, Columbia, Juniata, Lycoming, Mifflin, Montour, Northumberland, Perry, Snyder, and Union counties.

For more information -  www.seda-cog.org/finance or www.sedacogldc.org

Director, Business Finance Department
P: 570-524-4491
C: 570-898-6596

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Senior Relationship Manager II
P: 570-524-4491
C: 570-850-0195

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