Information notice 5000-17056

3rd Quarter "Peg" Rate, Direct Interest Rate and Maximum Interest Rate of a Third Party Lender Loan for a 504 Project

These are interest rates for 7(a) Direct Business Loans, optional peg rate, and maximum legal interest rate for certain loans from third party lenders.

To: All SBA Employees

The interest rate on Section 7(a) Direct Business Loans is 3 7/8 percent (3.875%) for the fiscal quarter beginning April 1, 2018. (Information only – no direct funds available at this time.)

The optional peg rate for fluctuating interest rates on guaranty loans is 2 5/8 percent (2.625%) for the April - June quarter of FY 2018.

Pursuant to 13 CFR § 120.921(b), the maximum legal interest rate for any third party lender’s commercial loan which funds any portion of the cost of a 504 project (see 13 CFR § 120.801) shall be 6% over the New York Prime rate or, if that exceeds the maximum interest rate permitted by the constitution or laws of a given State, the maximum interest rate will be the rate permitted by the constitution or laws of the given State.

Dianna L. Seaborn

Director Office of Financial Assistance

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File size: 167KB
Effective: April 2, 2018
Related Programs: 7(a), CDC/504
Last updated May 4, 2018