Jim Shaler

As of September 19th, 2024, the SBA loan rates are: SBA 7(a) (variable rates)10.25% to 12.75% SBA 7(a) (fixed rates)13% to 16% SBA Express loan rates12.5% to 14.5% SBA CDC/504 loan rates5.791% to 5.865% SBA Economic Injury Disaster Loan (EIDL) rates2.75% to 3.75% SBA Microloan rates8% to 13% Prime Rate: 8.0% LIBOR (One Month 3%): 8.07% SBA PEG Rate: 5.75%

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Commercial Real Estate (CRE) is the bread and butter of most community financial institutions, which makes this article's topic front and center for economists, bankers, and regulators alike. How much of the post-COVID-19 work-from-home policy changes are hurting the very same assets that community financial institutions hold? Is your financial institution well prepared in the event of a CRE value correction?

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Freddie Mac's 30-year fixed #mortgage rate just fell to 6.09% in the week of September 18 after the #Fed delivered a larger-than-expected rate cut of half a percentage point since it started raising rates in March 2022. The Federal Reserve Board #FOMC participants see another half a percentage point reduction through the end of 2024 and another full percentage point reduction in 2025 as consistent with the goal of ensuring that unemployment does not worsen significantly without reigniting inflation (Fed's outlook is a 4.4% unemployment rate and 2.1% PCE inflation at end of 2025). With mortgage rates hovering at 6%, the 30-year rate is headed for 5% end of 2025, a path that will spark a housing market rebound and sustained price appreciation, though not as hot as when rates plunged to 3%. On a $600,000 home financed at a 10% downpayment, the mortgage rate reduction from 6.5% to 5.0% saves buyers about $500/month and the income that a household needs to afford a home drops from $164,000 to $139,000. In Southeast #Florida, the reduction from 6.5% to 5% mortgage rate on a $600,000 home makes a home more affordable for about 10,000 renter households not able to afford a home before, an 10% increase on annual sales of about 100,000 in Southeast Florida. Miami Association of Realtors #miamiforwardfocus #miamiforwardthinking

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Top 5️⃣ Reasons Banks Should Partner with CDCs for SBA 504 Financing in todays landscape. 💼🤝 1. Risk Mitigation 📉 - Partnering with a Certified Development Company (CDC) reduces the bank's risk exposure. With the CDC covering up to 40% of the loan, banks only finance 50%, significantly lowering their risk. 🛡️ 2. Increased Lending Capacity 📊 - By working with CDCs, banks can leverage their capital more efficiently, allowing them to fund more projects and serve more clients without exceeding lending limits. 📈 3. Attractive Interest Rates 💰 - Banks can offer competitive fixed interest rates on the first mortgage portion of the loan, making the financing package more attractive to borrowers. This can lead to more business and satisfied clients. 🌟 4. Community Impact 🌍 - SBA 504 loans are designed to promote local economic development and job creation. By partnering with CDCs, banks contribute to the economic growth of their communities, enhancing their reputation and community ties. 🏢 5. Expanding Customer Base 👥 - Offering SBA 504 loans can attract new customers, particularly small business owners looking for favorable financing options. This expands the bank’s customer base and opens up cross-selling opportunities for other banking services. 🚀 Partnering with CDCs for SBA 504 financing is a win-win, benefiting banks, borrowers, and the community! 💼🤝🌟 #SBA504 #SmallBusiness #HotelFinancing #CommercialRealEstate #BusinessLoans #EconomicDevelopment #JobCreation #FixedRates #Banking #Finance #CDCLoans #BusinessGrowth #CommunityDevelopment #Entrepreneurship #SmallBizSupport #its504somewhere #ampacbusinesscapital

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In the Mortgage Industry, South Florida is a coveted area to have an operation. The loan sizes, the homes, the opportunities to hire top LO talent and the bragging rights/ feather in the cap for many companies. But….. if a company enters the South Florida landscape without strong representation and solid understanding of the business environment that is South Florida they are destined to fail. The competitive landscape of South Florida pushes margins lower and the cultural diversity of the area creates unique lending scenarios. Without strong leaders/teams who can surround themselves with people that will support the area, most operations that enter the area , find themselves closing their doors within 24 months and mitigating the losses occurred. The hierarchy is also a huge part of understanding the market place, everyone from CEO , CFO and Operations Manager need to have realistic expectations when entering the South Florida market. The cost, the profit margins and the cultural diversity are all things that companies struggle with. Many just cannot get their hands around the business atmosphere of South Florida. The mortgage graveyard is littered with companies from throughout the US that wanted to create a footprint in South Florida.

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Freddie Mac Small Balance Loan (SBL) program has announced a buydown option for new applications. Sponsors now have the opportunity to buydown their rate up to 2pts. This is a great way to lower your rate and loan proceeds can be increased up to 70% LTV by utilizing this buydown option. For a limited time, Freddie is allowing up to 2 years of additional interest only on deals up to 70% LTV with qualified sponsors, excellent property condition, and affordability on properties with up to 50 units. For deals that meet these requirements and sponsorship has a clear credit history, full term interest only is also available with a reduced DSCR adder on acquisitions with 20% hard cash equity or refinances with >5 years of ownership. Affordability, liquidity, and stability are the three cornerstones to Freddie Mac’s mission. Turbulent markets bring to the forefront the importance of the role Freddie Mac plays and they continue to stay proactive to remain a leader in multifamily financing. Ground up construction Rates starting at 10.5%-low 12s. Let’s connect to discuss the impact that these changes could have on your transaction today! John Rivera [email protected] 917-615-8943

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**How to Apply for SBA Financing in 5 Steps 🏦💼** Getting an SBA loan can help your business grow, but the process requires preparation. Here’s a simple 5-step guide to applying for **Small Business Administration (SBA) financing**: 1️⃣ **Determine Eligibility** First, make sure your business meets the SBA’s qualifications. Factors include business size, industry, and operating in the U.S. You’ll also need a good credit score and a strong business plan. 📊 2️⃣ **Choose the Right SBA Loan Program** The SBA offers different loan programs, such as **7(a) Loans**, **504 Loans**, and **Microloans**. Research which loan best fits your needs—whether it’s for working capital, real estate, or equipment. 🏢 3️⃣ **Gather Required Documentation** To apply, you’ll need to submit key documents such as: - Personal & business financial statements 📑 - Tax returns (personal & business) 📊 - Business plan 📋 - Business licenses & registrations - Debt schedule and profit & loss (P&L) statement 🧾 4️⃣ **Find an SBA-Approved Lender** Contact SBA-approved lenders, such as banks or credit unions. These lenders will review your application and help you through the loan process. 🏦 5️⃣ **Submit Your Application** Work with your lender to complete and submit your loan application, along with the necessary documentation. Ensure everything is accurate and complete for the best chance of approval! ✅ Need assistance with SBA loan applications? **FSMC Bookkeeping Services** can guide you through the process! 💼 Visit [FSMC Bookkeeping Services (https://fsmcquickbooks.com) for expert help. #SBAFinancing #SmallBusinessLoans #FSMCBookkeeping #BusinessGrowth #Funding

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