The Meyers Report: Economic Notes

Refinancing of SBA Loans Last September the SBA’s ability to provide refinance loans expired. This was a critical issue since so many banks were choosing to not renew loans, even if the loans were performing as agreed in their contracts. As a result, unnecessary pressure was being placed on small businesses even if they were healthy.

To remedy this, the Commercial Real Estate and Economic Development Act of 2013 or CREED Act of 2013 was introduced this March. The bill would provide a five-year reinstatement of the SBA’s authority to provide low-interest refinancing of small business debt not involving business expansion under the SBA’s local development business loan program.

This bill was introduced by Congressman Judy Chu (D-CA), who is the ranking member of the Committee on Small Business, which is chaired by Sam Graves (R-MO). The bill has with 24 sponsors and as of this morning was waiting to be introduced to the committee for writing up. We will keep you apprised.

Commercial Lending Rates Multi-family real estate lending interest rates continue their five-week climb. Since bottoming out the week of April 15th, interest rates generally are up 0.25% or more. HUD 223(f) and 221(d)4, respectively are at 3.77% and 4.42% (up 0.31%). Rates for Fannie Mae 30-year, 10-year and 7-year are respectively up 0.14%, 0.24% and 0.24%. Currently, the 30-, 10- and 7-year rates are 5.28%, 4.32% and 3.86%.

Our forecast is that these increases will continue for the foreseeable future, as the economy gains strength. By year end, look for rates to be up by another 0.5% to a full 1.0%-age points. SBA loans for May are at 3.93%.

Commercial Real Estate Lending Rates (5/20/2013)


Rates are subject to change without notice and are subject to property and credit qualifications. For details on any of these and other programs, contact Gary Meyers at 847-580-4260 or email:

Learn more about Commercial Corp Finance or read past reports.

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