2nd Quarter 'Peg' Rate, Direct Interest Rate and Maximum Interest Rate of a Third Party Lender Loan for a 504 Project
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The interest rate on Section 7(a) Direct Business Loans is 3 percent (3.00%) for the fiscal quarter beginning January 1, 2017. (Information only – no direct funds available at this time.)
The optional peg rate for fluctuating interest rates on guaranty loans is 2 percent (2.00%) for the January - March quarter of FY 2017.
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 Seaborn
Acting Director
Office of Financial Assistance