[Federal Register Volume 61, Number 146 (Monday, July 29, 1996)]
[Notices]
[Pages 39496-39499]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-19186]
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SMALL BUSINESS ADMINISTRATION
Interest Rates
The Small Business Administration publishes an interest rate called
the optional ``peg'' rate (13 CFR 120.214(c)) on a quarterly basis.
This rate is a weighted average cost of money to the government for
maturities similar to the average SBA direct loan. This rate may be
used as a base rate for guaranteed fluctuating interest rate SBA loans.
This rate will be 6\3/4\ percent for the July-September quarter of FY
96.
Pursuant to 13 CFR 120.932, the maximum legal interest rate for a
commercial loan which funds any portion of the cost of a project (see
13 CFR 120.801(c)(2)) shall be the greater of 6% over the New York
prime rate or the limitation established by the constitution or laws of
a given State. The initial rate for a fixed rate loan shall be the
legal rate for the term or the loan.
John R. Cox,
Associate Administrator for Financial Assistance.
Calculation of SBA's Peg Rate and Direct Lending Rate-4th Quarter
1996
SBA's Peg Rate is a Weighted Average of the last three months like-
maturity rates from the Treasury Department, as follows:
------------------------------------------------------------------------
Weighted
Month Weight Rate rate
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April...................................... 1 6.25 6.25
May........................................ 2 6.5 13
June....................................... 3 6.75 20.25
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Sum.................................... ......... ..... 39.5
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Divide by 6 to get Peg Rate 6.583333 = Peg Rate.
Round to the Nearest Eighth = 6.63
SBA's Direct Rate is last month's like-maturity Treasury Rate plus
1%, as follows:
June 6.75+1
Direct Rate = Last Month+1 = 7.75
Peg Rate: 6.625
Direct Rate: 7.750%
Average Maturity Calculation
Number of EOL loans.................... 1483 12.42 average maturity of EOL Loans.
Number of HAL loans.................... 987 14.33 average maturity of HAL Loans.
Number of VET loans.................... 860 10.75 average maturity of VET Loans.
Weighted Average
Weight-EOL Loans............................ 0.445345 5.531189
Weight-HAL Loans............................ 0.296396 4.247360
[[Page 39497]]
Weight-VET Loans............................ 0.258258 2.776276
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Sum..................................... 1 12.55482 = Average Maturity
Table 1.--Interest Rates for Specific Maturities
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Indicated for
Used for March April 1996 Changes
1996 (percent) (percent)
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1 year............................................................. 4\7/8\ 5\1/4\ +\3/8\
5 years............................................................ 5\1/4\ 5\3/4\ +\1/2\
15 years........................................................... 6 6\3/8\ +\3/8\
20 years........................................................... 6\1/8\ 6\5/8\ +\1/2\
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Table 2.--Range of Maturities to Which the Rates for April 1996 Apply
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Rate
From To (percent)
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0 years--3 months................. Only..................... 5
0 years--4 months................. 0 years--9 months........ 5\1/8\
0 years--10 months................ 1 year--3 months......... 5\1/4\
1 years--4 months................. 1 year--9 months......... 5\3/8\
1 years--10 months................ 2 years--5 months........ 5\1/2\
2 years--6 months................. 3 years--8 months........ 5\5/8\
3 years--9 months................. 5 years--0 months........ 5\3/4\
5 years--1 month.................. 5 years--10 months....... 5\7/8\
5 years--11 months................ 7 years--1 month......... 6
7 years--2 months................. 10 years--3 months....... 6\1/8\
10 years--4 months................ 12 years--9 months....... 6\1/4\
12 years--10 months............... 15 years--0 months....... 6\3/8\
15 years--1 month................. 17 years--4 months....... 6\1/2\
17 years--5 months................ 26 years--11 months...... 6\5/8\
27 years--0 months................ 29 years--11 months...... 6\1/2\
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The rates shown for April are based on average market yields from
February 21, 1996 through March 20, 1996.
Table 1.--Interest Rates for Specific Maturities
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Indicated for
Used for April May 1996 Changes
1996 (percent) (percent)
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1 year............................................................. 5\1/4\ 5\1/2\ +\1/4\
5 years............................................................ 5\3/4\ 6\1/4\ +\1/2\
15 years........................................................... 6\3/8\ 6\3/4\ +\3/8\
20 years........................................................... 6\5/8\ 6\7/8\ +\1/4\
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Table 2--Range of Maturities to Which the Rates for May 1996 Apply
------------------------------------------------------------------------
Rate
From To (percent)
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0 years--3 months................. 0 years--4 months........ 5\1/8\
0 years--5 months................. 0 years--7 months........ 5\1/4\
0 years--8 months................. 0 years--10 months....... 5\3/8\
0 years--11 months................ 1 year--1 month.......... 5\1/2\
1 year--2 months.................. 1 year--4 months......... 5\5/8\
1 year--5 months.................. 1 year--8 months......... 5\3/4\
1 year--9 months.................. 2 years--2 months........ 5\7/8\
2 years--3 months................. 3 years--4 months........ 6
3 years--5 months................. 4 years--7 months........ 6\1/8\
4 years--8 months................. 5 years--10 months....... 6\1/4\
5 years--11 months................ 10 years--2 months....... 6\3/8\
10 years--3 months................ 13 years--0 months....... 6\1/2\
13 years--1 month................. 14 years--11 months...... 6\5/8\
15 years--0 months................ 16 years--11 months...... 6\3/4\
17 years--0 months................ 25 years--9 months....... 6\7/8\
25 years--10 months............... 29 years--10 months...... 6\3/4\
------------------------------------------------------------------------
The rates shown for May are based on average market yields from
March 21, 1996 through April 20, 1996.
[[Page 39498]]
Table 1. --Interest Rates for Specific Maturities
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Indicated for
Used for May June 1996 Changes
1996 (percent) (percent)
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1 year............................................................. 5\1/2\ 5\5/8\ +\1/8\
5 years............................................................ 6\1/4\ 6\3/8\ +\1/8\
15 years........................................................... 6\3/4\ 6\7/8\ +\1/8\
20 years........................................................... 6\7/8\ 7\1/8\ +\1/4\
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Table 2. --Range of Maturities to Which the Rates for June 1996 Apply
------------------------------------------------------------------------
Rate
From To (percent)
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0 years--3 months................. Only..................... 5\1/8\
0 years--4 months................. 0 years--6 months........ 5\1/4\
0 years--7 months................. 0 years--8 months........ 5\3/8\
0 years--9 months................. 0 years--11 months....... 5\1/2\
1 year--0 months.................. 1 year--1 month.......... 5\5/8\
1 year--2 months.................. 1 year--4 months......... 5\3/4\
1 year--5 months.................. 1 year--8 months......... 5\7/8\
1 year--9 months.................. 2 years--0 months........ 6
2 years--1 month.................. 2 years--8 months........ 6\1/8\
2 years--9 months................. 3 years--10 months....... 6\1/4\
3 years--11 months................ 5 years--0 months........ 6\3/8\
5 years--1 months................. 6 years--3 months........ 6-\1/2\
6 years--4 month.................. 9 years--11 months....... 6\5/8\
10 years--0 month................. 13 years--0 months....... 6\3/4\
13 years--1 months................ 15 years--9 months....... 6\7/8\
15 years--10 month................ 18 years--10 months...... 7
18 years--11 months............... 22 years--1 month........ 7\1/8\
22 years--2 months................ 27 years--5 months....... 7
27 years--6 months................ 29 years--9 months....... 6\7/8\
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The rates shown for June are based on average market yields from
April 21, 1996 through May 20, 1996.
Average Loan Maturity by Loan Program--Loan Portfolio Basis
[Quarter Ended 03/31/96]
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Total maturity Average maturity Average maturity
Loan program Number of loans months months years
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Business 7(A):
Direct...................... 1,188 244,739 206 17.17
Immed Part.................. 41 8,727 213 17.75
Guaranty.................... 169,135 23,759,704 140 11.67
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Total................... 170,364 24,013,170 141 11.75
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EOL:
Direct...................... 1,483 221,425 149 12.42
Immed Part.................. 4 833 208 17.33
Guaranty.................... 404 59,783 148 12.33
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Total................... 1,891 282,041 149 12.42
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Handicapped:
Direct...................... 987 169,408 172 14.33
Immed Part.................. 39 7,601 195 16.25
Guaranty.................... 7 1,554 222 18.50
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Total................... 1,033 178,563 173 14.42
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Veterans:
Direct...................... 860 110,935 129 10.75
Immed Part.................. 2 480 240 20.00
Guaranty.................... 1 120 120 10.00
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Total................... 863 111,535 129 10.75
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SBIC:
Direct...................... 128 18,142 142 11.83
Immed Part.................. 0 .................. .................. .00
[[Page 39499]]
Guaranty.................... 210 26,592 127 10.58
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Total................... 338 44,734 132 11.00
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Displ Bus:
Direct...................... 405 128,885 318 26.50
Immed Part.................. 41 11,993 293 24.42
Guaranty.................... 2 546 273 22.75
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Total................... 448 141,424 316 26.33
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[FR Doc. 96-19186 Filed 7-26-96; 8:45 am]
BILLING CODE 8025-01-M