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What makes us different?

Wakarusa Valley Development, a non-profit organization, partners with the U.S. Small Business Administration to meet the financing needs of growing small businesses throughout the state of Kansas.

We provide small businesses long-term, fixed-rate financing to acquire real estate and equipment through the SBA 504 Loan Program. Additionally, with our SBA 7(a) Loan packaging services we can help small businesses gain access to capital and assist area lenders in building relationships by meeting their borrowers’ needs.

Whether you are a small business owner or a dedicated Kansas lender, we will provide the right SBA lending solution for you.

Our News

25 Year Debenture Now Available

SBA announced the availability of a 25 year maturity for 504 loans. This is in addition to the 10 and 20 year 504 loans that are currently available in the 504 Loan Program.

About the 25 year debenture:

- This new 25 year 504 Debenture is available for 504 projects that are approved on or after April 2, 2018

- The term of a 504 Debenture for any 504 project approved prior to April 2, 2018 may not exceed to 25 years

- The voluntary prepayment schedule will stay at 10 years for the 25 year loans, the same as for the 20 year loans

- The term of the Third Party Loan accompanying a 25 year 504 loan must be at least 10 years

- The fee structure is the same as for 20 year loans and debentures

- Rates for the 25 year debenture are determined at the time of funding and are anticipated to be set at a spread above the 20 year debenture rate. Actual rates will not be known until the debentures are presented for sale. SBA expects to offer this debenture funding monthly

 odtülüler dershanesi

Historic Low 504 Loan Pricing and Mitigated Risk

Most people would agree, when prices are good it is a good time to buy. For the month of September, the effective rate on 504 loan is 4.08% fixed for 20 years and 4.28% fixed for 10 years.butik dershane Rates have been consistently good for several months, yet these are the best rates we have seen in years.

The 504 loan product has been a main stay in economic development through fixed asset financing for years. The reason for it's success can partly be attributed to the key advantages it offers both borrowers and lenders.Ankara Dershane

The key advantages it offers borrowers include a low down payment, a low fixed rate (thus a hedge against rate fluctuations) and the inclusion of most soft costs. For the lender, the 504 loan product offers limited credit and concentration risk while still meeting their customers' needs. In addition,veri kurtarma  Wakarusa Valley Development will shoulder the underwriting and packaging of the loan!

Given these advantages and our current economic cycle, low pricing and mitigated risk go well together, don't you think?hazır ofis If you have a prospective project, give us a call. Let's keep our momentum in moving our community forward.

 

SBA Life Insurance Requirements

Although obtaining life insurance on the primary business owner may be a credit issue, generally SBA requires some type of life insurance coverage on all SBA loans.

Credit decision aspects include:
-  Is the repayment of the loan depended upon an owner's active participation in the business? If yes, life insurance is required
-  Are there other sources of repayment or adequate collateral available? If yes, life insurance coverage may be waived or coverage can be less than the loan balance
-  If the owner dies and there is not adequate life insurance coverage, and there is a loan deficiency, SBA may repair / deny payment of the guaranty

The lender must:
-  Obtain a collateral assignment identifying the lender as an assignee with the assignment acknowledged by the home office of the insurer
-  Assure the borrower pays premiums on the policy
-  Have a copy of the life insurance policy
-  Include insurance requirement and amounts in credit memo and keep in file

If a lender makes the decision not to require life insurance, the file must be documented with the decision outlining why the lender does not believe life insurance is necessary and / or how the lesser amount was determined.

 

504 Interest Rates

20 Year Rates

August 5.31%
July 5.36%
June 5.32%

10 Year Rates

July 5.30%
May 5.30%
March 5.11%

* Interest rates may vary.

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