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504 Rate Update

504 Program Rate Update for October 2014

4.821% – 20 Year Debenture Effective Rate *

Things to Consider and Issues of Concern


The federal deficit is now under 3% of GDP, and continuing to decline;
Interest rates, reflective of inflation expectations, are dropping;
The S&P is within eight percent of all-time highs;
The US economy is producing jobs at a rate not seen in a decade;
The US is producing oil at a rate not seen in decades;

. . . . and yet:

We fret about the full panoply of human ills: war, disease, disarray,


Chart and Statistical Data is from September 2006 to October 2014

Debenture Rate 10 Year T-Note
Spread Over T-Note
Oct 2014
2.32% 0.42%
3.10% 0.87%
0.009532305 0.006111324

So with the ever present lack of clarity as regards the future, our only advice remains: if you are buying capital assets, fix the rates for as long as you can, and worry less about the financing. Life can provide a wide array of things to worry about.

504 provides: a twenty year fixed rate, for a fully amortizing loan, and a better spread of risk for both lender and borrower. Work better and worry less, working with 504.

We welcome the opportunity to earn your business.

* Note: Rates are subject to credit determination & auction pricing. Past performance is no guarantee of future results.

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South Central Tennessee Development
101 Sam Watkins Blvd.
Mount Pleasant, TN 38474
Office (931) 379-2918
Fax (931) 379-2640

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