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Tuesday, November 4, 2008

Daily Observation - 7.72% a record High

Explaining the November 504 rate. This is a sizeable jump in the CDC Debenture 20 year bond. We've gone up over 75 basis points from the previous month.

After months of relatively stable SBA lending rates in a highly volatile market, the turmoil in the credit markets has impacted the 504 loan rate.

There are two key reasons for the unusual rate increase for November: - A rise in treasury rates- Record wide spreads in the government-guaranteed debt market

We believe this situation, created by extraordinary circumstances in the credit markets, is temporary. It’s expected that the markets and rates will settle down in first quarter 2009.

The above is a quote from one of our local CDC.

So as you can see as the rest of the credit markets supposedly loosen up, we are seeing SBA rates and programs getting tighter each and every day. Use this to your advantage and "sell" the 504 look-a-like programs which today are still below 7.0%, some lenders that we are dealing with are actually in the 6.75% range. There is no better time for your clients or for yourself to buy that building that you are currently paying rent for, or to stop being a tenant and move your business to your own building.

With 10% down and rates below 7.0% act now! For information on our SBA 504 look-a-like loan visit loanforbiz.

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