Bay Colony Development Corp. in the News

25 Year 504 Option

It’s finally here! After hearing about it for over a year, the SBA has announced that the 25 Year 504 option is available for loan applications approved after April 2, 2018.

Like the 10 and 20 Year 504 options, the loan is designed for small businesses to finance commercial real estate or large equipment for use in business operations. The extended amortization option on the 504 loan will help borrowers to reduce monthly loan payments. Here are some initial details that have been provided:

  • The 25 Year option is available for New loan applications approved after April 2, 2018, previously approved loans can not be changed to the 25 Year option.
  • The Third Party Lender loan has to have a minimum term of 10 years.
  • The first 25 year debenture is expected to be funded July 2018, pricing for the initial 25 year debenture will have a spread no wider than 35 basis points above the current 20 year rate. For example, based on the March rate of 4.99%, an indicative 25 Year rate would be 5.34%. (25 year rate pricing will be based upon supply and will be modified once demand for the option is established).
  • Prepayment penalty for the 25 Year loans will be 10 years, the same as the 20 year option.

Give us a call to discuss how this new option can benefit your borrowers!

 

Bay Colony Development named the top SBA 504 lender in Massachusetts

Bay Colony Development Corp was recently named the top SBA 504 lender in Massachusetts in both number of loans and dollars lent to small businesses in the state.  We would like to thank our lending partners for your continued business and trust.  In FY 2017 we were able to assist 121 companies with nearly $55 million in 504 project funding in the states we do business.  Thank you for a great year and we look forward to a successful FY 2018 with your support.

Pictured is Mark Hayward, SBA Acting Regional Administrator for New England, Erik Adams, Director of Marketing for Bay Colony Development Corp and Robert Nelson, District Director,  SBA Massachusetts.

Bay Colony Staff Contributes to Toys for Tots

The Staff at Bay Colony is happy to continue our tradition this year of supporting the Toys for Tots mission of providing a new, unused toy for less fortunate children in the community.  With contributions from the staff and a matching contribution from the company we were able to purchase over $1,000 worth of toys this year.  We hope that you will consider joining us and contributing to your favorite organization.  Happy Holidays!

SBA Officials announce a 25 Year Debenture is on the way for 504 Loans

SBA officials announced last week at NADCO’s Spring Summit that the Office of Management and Budget (OMB) has cleared the way for the issuance of 25-year debentures in the SBA 504 program. This structure has long been sought by the industry to provide its 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 longer maturity is a vehicle that can serve that purpose. The announcement was very well received by Spring Summit attendees.
The new 25-year debenture is a FY18 initiative, and the details are being finalized by SBA and the other parties involved in the debenture funding process. While specifics of the timeline for the launch of the 25-year debenture were not discussed, due to the number of parties involved in this new issuance, it is likely the launch will not occur until after the first quarter of FY18.

SBA Administrator McMahon rescinds program name changes

What’s our name?  Back in November the SBA announced a re-branding of the 7A loan program and the 504 Loan program with new names of SBA Advantage Loan Program and SBA Grow Loan Program.  After much debate in the industry over the new names, we are happy to report that SBA Administrator McMahon has rescinded the name changes and we are once again the 7A Loan Program and 504 Loan Program.

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Erik Adams
781.478.3653

Eberto Ranero
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Brad Nichols
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Heather Storme
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