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FOR IMMEDIATE RELEASE
September 11, 2014
CONTACT: Andrea McCarthy, (202) 822-1205      

Debenture Rate Stays Well Below 12-Month Average In September  

Washington, DC - The monthly National Association of Development Companies (NADCO) Small Business Lending Report (SBLR) shows the market continues to favor the borrower. September's debenture rate of 2.92 percent marked the fourth month in a row the debenture rate has stayed below three percent, and is still well below the 12-month average of 3.2 percent. It is clear that borrowers are still benefitting from historically low rates, even as the market anticipates rate increases amid a modest economic recovery. Not only can borrowers access this near-historic rate now, they can lock it in for up to 20 years with a 504 loan.
September's loan pool size of $355,242,000 is 13 percent greater than the 12-month average of $309,704,077. This month's effective interest rate (the all-in cost to a borrower) stands at five percent. This is a great rate for anyone looking to secure a loan, because unlike variable interest rate loans, a REAL 504 loan locks in the same rate for up to 20 years. 

ABOUT THE NADCO SMALL BUSINESS LENDING REPORT (SBLR)
The monthly SBLR offers the debenture rate (plus the twelve month average debenture rate), monthly pool size (loan volume in dollars) and other relevant and insightful data. The data on the REAL 504 loan program reported in the SBLR can serve as an overall barometer of confidence for small business owners.

ABOUT SBA REAL ESTATE ADVANTAGE (REAL 504) LOANS
The SBA Real Estate Advantage (REAL 504) Loan asset finance initiative is SBA's flagship economic development program, designed to assist small business owners in obtaining 10% down, low-rate, long-term financing for capital assets like the purchase of real estate and equipment.

ABOUT NADCO
The National Association of Development Companies (NADCO) is the trade association of SBA lenders including Certified Development Companies (CDCs), nonprofit companies that have been certified by the Small Business Administration (SBA) to provide financing for small businesses under the SBA 504 Program. NADCO represents nearly 270 CDCs, serving all 50 states. In 2013, the industry provided $5.1 billion to nearly 8,000 U.S. small businesses.
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