Information Notice 5000-824240 - Peg Rates 2nd Qtr FY22
Summary
SBA Information Notice, Control No. 5000-824240, effective December 30, 2021, to all SBA employees, on the 2nd 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 2.88 percent for the fiscal quarter beginning January 1, 2022, for information only. The optional peg rate for fluctuating interest rates on guaranty loans is 1.75 percent for the January – March quarter of FY 2022. 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.: 5000-824240
SUBJECT: 2nd Quarter "Peg" Rate, Direct EFFECTIVE: December 30, 2021
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 2.88 percent (2.88%) for the fiscal
quarter beginning January 1, 2022. (Information only – no direct funds available at this time.)
The optional peg rate for fluctuating interest rates on guaranty loans is 1.75 percent (1.75%) for
the January – March quarter of FY 2022.
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: 12/1/22
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
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