A Non-Profit Certified Small Business Development Company Offering LOW INTERERST Financing for Business in Louisiana
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Restore Louisiana

Now Accepting Loan Applications for the Restore Louisiana Small Business Program, designed to assist Small Businesses located in areas (51 designated parishes) adversely affected by the Severe Storms and Flooding Events of 2016.

Click here to download and print the PDF Application. Be sure to fill out the application completely as only totally complete applications can be accepted !!!!

Please call (504) 524-6172 for information.

 

Think OFFENSE!

When was the last time you talked about a 20- year fixed rate with one of your customers?

Historically, we all know the 504 product has been used as a credit enhancement. If the credit department was nervous about a deal, then you would make them feel better with the 50% LTV that the 504 product offers.

However, the 504 program has been under-used as part of pricing strategy. As bankers, we all wish we did not have several competitors on every deal. The reality is that it is the norm and not the exception.

In survey after survey, businesses have said that they are looking for something value-added in their banking relationship. They don't want to hear about the same old products. They want to know "How can you save me money or make me money"? The 504 product has lots of value-added elements, such as:

Low-equity requirement. There is nothing more precious to any business than working capital. They never have enough. With only a 10% equity requirement for existing businesses, the 504 offers capital preservation. In addition, most fees (closings costs, appraisal fees, environmental fees and points) can be financed.

20-Year Fixed Rate. The interest rate on our 40% of the debt loan is fixed for up to twenty years. When was the last time you talked about a 20-year fixed rate with one of your customers?

Current Rate. The current note rate on 504's is 5.4%. Adding in the servicing fees, the effective rate is 6.9%.

TO RECAP: Only a 10% equity requirement. Fixed rate for twenty years at 6.9%.

Do you think that would add value to a current relationship or get you in the door to a new client?

 


Regional Loan Corporation
3801 Canal Street
Suite 320
New Orleans, LA 70119
Tel: (504) 524-6172
Fax: (504) 524-0002

SBA 504
Interest Rate

5.2%*

20 years fixed**

 

 

 

* Rates are subject to change, based on the monthly debenture sale.   ** Terms may vary based on useful life of collateral.

Regional Loan Corporation 3801 Canal Street Suite 320 New Orleans, LA 70119 Tel: (504) 524-6172 Fax: (504) 524-0002

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