New Rates for State Loan Programs just announced
The rates will be in effect for loan applications received through June 30, 2015.
For Real estate loans financing eligible land and building costs, borrowers will have the following two interest rate options:
1. Fixed interest rate for the full term of the loan (up to a 15-yr. period). This option is calculated using the 10-year treasury yield +100 basis points. Based on the current 10-year treasury yield, the fixed rate option is 3.00% for the life of the loan.
2. Fixed interest rate for a seven (7) year period set at the 10-year treasury rate. After seven years, the rate will reset to the 10-year treasury rate. Please note, the reset rate is limited to a 200 basis point increase/decrease and has a floor of 2.25%. The reset rate is then fixed for the duration of the loan.
For this option, the rate is fixed for (7) years at 2.25% and will reset to the 10-year treasury rate after the (7) year period. The reset interest rate is capped at 4.25% (200 point increase) with a 2.25% floor and will be fixed for the remaining term of the loan.
For Equipment loans – 3.00% fixed rate for the full term of the loan.
For Working capital and accounts receivable lines of credit – 3.00% fixed rate for 12 month period.