SBA Rates and Commentary From Liberty SBF – Not All SBA Loans Are Created Equal

March 25, 2014

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All Small Business Administration Loans are not created equal. If one lender turns down your SBA loan, don’t despair because you can always take it to another lender. We often look at loans that have been turned down by others.

Although SBA loans are guaranteed by the Federal Government program, each lender goes through its own underwriting standards based and what the administration sets in its guidelines. Ami Kassar explains the ins and outs of this in his article on the Wall Street Journal website.

The FOMC statement marked a bit of a change in how the Feds measure when to start increasing interest rates. “The committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the committee views as normal in the longer run,” according to the Fed.

President Obama has hit a sore spot with his overtime pay proposal. The Wall Street Journal is reporting that the move will hurt small businesses that have relied on overtime instead of hiring new workers to defray costs while the economy continues to recover.

Small businesses have been bitten by Jack Frost. The National Federation of Independent Business reported its small business optimism index dropped to 91.4 in February, from 94.1 in January, its lowest reading in almost a year, reported the Wall Street Journal.

But retail sales have reportedly risen 0.3% in February from -0.6% in January (revised from -0.4%). December’s numbers were also revised from -0.1% to -0.3%. Auto sales were up 0.3%, furniture sales gained 0.4% and building materials rose 0.3%. The surge in sales might have something to do with the winter thaw as we saw somewhat less snow. If the weather improves, and sales go up, can confidence be far behind?

At least some pome people are happy. The number of millionaires is at an all time high, according to reports.

Finally, if you think about how science fiction might become real life fact, then National Journal’s article asking if robots are taking over our jobs might be a good read today. Economists offered their opinions on the subject but it might not be as silly an idea as one might think.

Small Business Administration (SBA) Weekly Rate Sheet:
3.25% I WSJ PRIME FLOATING RATE
4.14% I 5-YEAR LIBOR SWAP FIXED RATE

Liberty SBF directly funds Owner-Occupied Commercial Real Estate Loans up to $13M.
Current Par Rates on “A” Paper – Top 20 MSAs Only on Multi-Use Real Estate, Office and Industrial Properties.

Term
10-25 year term
20-25 year amortization

Loan Parameters
• Focus on professional office and industrial properties. (Other property types considered on a case-by-case basis)
• Up to 90% LTV on owner-occupied commercial real estate transactions.
• Up to 65% LTV on conventional commercial real estate acquisitions and refinances.
• Personal credit score of 675 or better.
• DSCR > 1.20x