Information Notice 5000-808555 Peg Rates 3rd Qtr FY2021
Summary
SBA Information Notice, control no. 5000- 808555, effective April 1, 2021, on the 3rd quarter peg rate, direct interest rate and maximum interest rate of a third party lender loan for a 504 project. It sets the interest rate on Section 7(a) Direct Business Loans at 2.63 percent for the fiscal quarter beginning April 1, 2021, and the optional peg rate for fluctuating rates on guaranty loans at 1.38 percent for the April to June quarter of FY 2021. Under 13 CFR 120.921(b), the maximum rate on a third party lender's commercial loan funding a 504 project is 6% over the New York Prime rate, or the lower rate a State's law permits. The notice carries the signature block of Dianna L. Seaborn, Director, Office of Financial Assistance.
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Full text
SBA Information Notice
TO: All SBA Employees CONTROL NO.: 5000- 808555
SUBJECT: 3rd Quarter "Peg" Rate, Direct Interest EFFECTIVE: April 1, 2021
Rate and Maximum Interest Rate of a Third Party
Lender Loan for a 504 Project
The purpose of this Notice is to announce the interest rate on Section 7(a) Direct Business Loans
is 2.63 percent (2.63%) for the fiscal quarter beginning April 1, 2021. (Information only – no
direct funds available at this time.) The optional peg rate for fluctuating interest rates on guaranty
loans is 1.38 percent (1.38%) for the April – June quarter of FY 2021.
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: 4/1/22
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
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