SBA Information Notice 5000-840341: 1st Quarter "Peg" Rate, Direct Interest Rate and Maximum Interest Rate of a Third Party Lender Loan for a 504 Project
Summary
SBA Information Notice, Control No. 5000-840341, effective September 30, 2022, to all SBA employees, on the 1st quarter peg rate, the direct interest rate and the maximum interest rate of a third party lender loan for a 504 project. It states that the interest rate on Section 7(a) Direct Business Loans is 4.25 percent for the fiscal quarter beginning October 1, 2022, for information only. The optional peg rate for fluctuating interest rates on guaranty loans is 3.25 percent for the October – December quarter of FY 2023. It cites 13 CFR 120.921(b) for the maximum third party lender rate.
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Full text
SBA Information Notice
TO: All SBA Employees CONTROL NO.: 5000-840341
SUBJECT: 1st Quarter "Peg" Rate, Direct EFFECTIVE: September 30, 2022
Interest Rate and Maximum Interest Rate of a Third
Party Lender Loan for a 504 Project
The interest rate on Section 7(a) Direct Business Loans is 4.25 percent (4.25%) for the fiscal
quarter beginning October 1, 2022. (Information only – no direct funds available at this time.)
The optional peg rate for fluctuating interest rates on guaranty loans is 3.25 percent (3.25%) for
the October – December quarter of FY 2023.
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
PAGE 1 of 1 EXPIRES: 9-1-23
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
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