Comments on: The 504 Loan Program Continues to Tread Water

By: Charles Green

Charles Green — Sun, 15 Nov 2015 15:25:10 +0000

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.

By: Chris Hurn

Chris Hurn — Fri, 13 Nov 2015 20:38:51 +0000

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

By: Jeff Sceranka

Jeff Sceranka — Fri, 13 Nov 2015 20:13:07 +0000

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.