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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 Announcement

SBA officials announced that the Office of Management and Budget (OMB) has cleared the way for the issuance of 25-year debentures in the SBA 504 loan program. This will allow small business borrowers a longer-term option in addition to the existing 10 and 20 year loan products. Improved cash flow is of vital interest to all businesses, especially those served by the 504 program, and the loner maturity is a vehicle that can serve that purpose.

The new 25-year debenture is a FY18 initiative and the details are still being finalized by SBA. While the timeline specifics have not been announced it is likely the launch will not occur until after the first quarter for FY18. 

 

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. 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.

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, 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? If you have a prospective project, give us a call. Let's keep our momentum in moving our community forward.

 

We Have an App For That! (sort of)

In our fast moving and competitive world, our daily computing needs have moved to our smart phones. Wakarusa Valley Development's website has the tools to assist you with your clients while you are on the go.

Picture this scenario:

You meet a client for lunch to discuss possible financing options for a new building for her business. As you discuss the project, you realize a 504 loan may be an option. You'd like to visually show her the 504 loan structure for her project. Rather than fumbling with pulling out your laptop, wait for it to boot up, connect to the WiFi, etc, you simply pull out your smart phone, click on your WVDI 504 Loan Calculator bookmark, enter a couple fields of data and viola! You have your 504 loan project structure to show her right on your phone in less than 30 seconds.

If you haven't been to our website for awhile, please pay us a visit. We strive to provide up-to-date information and the tools to better serve you and your clients.

As a reminder, if you have any questions regarding the recently reinstated 504 Debt Refinance Program please do not hesitate to give us a call or have us come out to give your team a presentation and answer any questions.

504 Interest Rates

20 Year Rates

July 4.77%
June 4.60%
May 4.67%

10 Year Rates

July 4.50%
May 4.51%
March 4.82%

* Interest rates may vary.

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