Email a copy of 'The 504 Loan Program Continues to Tread Water' to a friend
Loading ...
-
Cart
-
-
Money Tweets
Tweets about "from:AmerBanker OR from:naggl7a OR from:nadco504 OR from:ScotsmanGuideCE OR from:CFANational OR from:ABLAdvisor OR from:DnBUS OR from:ExperianDA OR from:Transunion OR from:EquifaxSmallBusiness OR from:ICBA OR from:Cam_Fine OR from:BW OR from:atlantafed OR from:eximbankUS OR from:ClevelandFed OR from:minneapolisfed OR from:philadelphiafed OR from:bostonfed OR from:clevefedresearch OR from:BAI_Info OR from:SFFedReserve OR from:chicagofed OR from:Kansascityfed OR from:DallasFed OR from:AdviceOnLoan"
-
-
Commercial Lender Resource Links
- ABA-American Bankers Association
- CFA-Commercial Finance Association
- ELFA-Equipment Leasing & Finance Association
- ICBA-Independent Community Bankers of America
- IFA-International Factoring Association
- NADCO-National Association of Development Companies
- NAGGL-National Association of Gov’t Guaranteed Lenders
- NEFA-National Equipment Finance Association
- RMA-Risk Management Association
- Small Business Finance Association
Jeff, thanks for your comments. Chris did mention default rates and among the many other story details, I failed to mention it in my article. Alas, life of researcher, writer, editor, publisher–did I mention we provide lender training?–and entrepreneur.
The default rate to date for the 504 refinance loans is extraordinary: From $2.54 billion refinanced loans, charge-offs so far are just a few thousand over $2 million.
Thanks for your comments, Jeff.
And just so you know, your comment about 504 refi performance was a victim of Charles’ fine editing. I mentioned that very fact to him, but alas, it stayed on the cutting-room floor. ;)
Oh well!
Hope you’re well.
Chris
This is one of the most thorough and thoughtful articles I have read regarding the 504 program.
What is important to note as a smaller CDC in Southern California, is that the program’s results are not just tabulated in dollars or volumes, but the multitude of programs provided by the CDC’s that participate in the 504 program. The revenues generated by the 504 allows numerous outreach, economic development assistance, grants, and alternative loan programs.
Of course, bringing back the refi program makes sense on all levels. The thing that is never addressed in these articles is the default rate of the loans that were made during the period this program was available. That should end any discussion about cost to the government.