Two Days, Two Topics, No Cost
Join HCDC for two different workshops on the ins and outs of the SBA 504 program. These presentations will be given from the perspective of what third-party lenders need to know. Come for one day or both days. Send different people for each session. Whatever works best for you!
- SBA 504 eligibility
- SBA 504 requirements
- SBA approval process
- Info on the NEW SBA Debt Refinance Program
- Benefits to third-party lenders
- Required information to support how funds were used
- The SBA 504/HCDC closing process
- What the borrower needs to provide
- What the third-party lender needs to provide
- The SBA 504 funding process
Video: What You Need to Know About the NEW SBA Debt Refinance Program
HCDC is now accepting applications for the refinance of commercial debt using the recently reinstated SBA Debt Refinance Program. The program can be used on eligible fixed assets that include what would have been originally financed with an SBA 504 loan, such as land, buildings, machinery, and equipment, whether acquired, constructed, or improved for the benefit of the small business.
This is the time to refinance existing commercial debt. With the SBA 504 Program now at historic low interest rates, borrowers can lock in a low rate for twenty years. Even 504 borrowers who refinanced their 504 loan more than two years ago, can come back and use the 504 Debt Refinance Program.
HCDC VP Lending Andy Young goes over the eligibility, loan requirements, and other details in the below video:
[youtube id=”A-FVK5zJTxY” align=”left” mode=”normal”]
“Brexit: Britain’s Exit from the EU”
SBA 504 Fiscal Agent’s Market Commentary by Frank Keane
Against all odds – going into Thursday’s Brexit vote, Ladbrokes, the English bookmaker, placed a 90% probability on Britain remaining in the European Union. Though less costly than their 5000/1 odds against Leicester City winning the Premier League, this result will have significant influence on financial markets and global economies.
After rising earlier in the week global stock markets buckled on Friday as traders reacted to Britain’s decision to leave the European Union.
The vote was 52%-48% with 72% of eligible voters participating. A clear demographic was generational: 57% of voters ≥55 voted to Leave, while 57% of voters aged 18-34 supported Remain. Analysts identify this split as younger Britons having grown up in a period of European integration and liking it, while the older group seeks to reclaim their nationalist identity.
Trade – England would prefer to retain access to the EU’s single market but probably will have to negotiate bilateral trade deals, which could be costly and time consuming to negotiate
Immigration – perhaps the most compelling argument to Leave and one that might parallel sentiment in the U.S. presidential campaign. Existing EU nationals in the UK could remain but new entrants would no longer have the automatic right to work and live there.
Economy – the consensus opinion is that Brexit will hurt UK growth, at least short-term
UK composition – two years ago Scotland voted to remain but there is speculation they, and perhaps Northern Ireland, will seek membership in the EU themselves. Such a decision could further weaken Britain’s economy.
Lower, for a lot longer
The Treasury market had weakened leading up to Thursday and then had the sharpest one-day rate drop in five and one-half years. The chart below shows how the ten-year rate had traded as low as 1.57% in the week of June 20, then eased back going into last Friday. Treasuries will continue to be a “safe haven” investment while the impact of this vote and timing of the withdrawal continues to be evaluated. Likewise, the British pound will continue to weaken until there is more clarity or it simply becomes oversold.
Maybe, maybe not – the referendum took place because David Cameron promised it during his reelection campaign to appease the Brexit contingent of his party. While not legally binding, it will be interesting to see how long it will take for the necessary paperwork to be submitted. An Article 50 needs to be initiated by the UK and sent to Brussels in order to formally begin the process. While Mr. Cameron had previously said he would submit it the day after the vote, he decided not to submit it, offered his resignation, and will leave that task to his successor, who will probably not take office until October. It is that person who will be handed, in the words of one British writer, the “poisoned chalice.” Cameron has deftly identified the reluctance of any politician to be the architect of Britain’s departure from the Union. If that assessment is correct and Britain delays the paperwork (which triggers a two-year deadline once it is submitted) markets will face more uncertainty and remain unsettled. Such a delay could be offset by the insistence of some EU leaders who want Britain to act quickly, something even the Brexit leaders do not advocate as they prefer informal talks in order to negotiate the best terms.
The week ahead – should help to sort out some issues, like:
* Have bad positions taken in expectation of a Remain vote been shaken out?
* More currency intervention as the Swiss and Japanese seek to offset strength while the Bank of England looks to support pound sterling at levels not since sine the 1980’s. With “safe haven” investing, $US has gained strength and that will weigh on the Fed
* Will sovereign debt yields continue to decline? In early morning trading, CT-10 is at 1.47%, UK gilts are at 0.95%, German bunds are -0.10%, JGB’s are -0.23%
SBA 504 Loan Rates
4.12% – 10 Years
4.09% – 20 Years
Loans Funding This Month
HCDC Borrowers in the News
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