Bay Colony Development Corp. in the News
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 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.
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!
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.