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504 Rate Update

504 Program Rate Update for December 2014

4.782% – 20 Year Debenture Effective Rate *

Frying Pans and Fires

Mark Mobius, the renowned specialist in foreign and emerging markets, observed in the financial press this weekend, that the risk in the world economy leaned either to accelerating deflation or rampant inflation.

From the frying pan to the fire.

Chart and Statistical Data is from September 2006 to December 2014

Debenture Rate 10 Year T-Note
Spread Over T-Note
Dec 2014
2.20% 0.50%
3.08% 0.86%
2.98% 0.67%
0.00950662 0.006075733

504 debenture rates continued a gentle easing leaving them if not near historic lows, then certainly in a subdued range. This was driven by the continued demand for US Treasury offerings, a trend likely to be supported for the coming year by both diminishing US federal budget deficits and the strength of the US dollar.

So if “none of the above” is not a choice, what is a small business owner to do? Perhaps the safest course is to lock-in a major operating cost, occupancy, by using the fixed rates of the SBA 504 program. (Unless you believe that rampant deflation leads to complete economic and social collapse. Then buy ammunition, canned goods and gold; in that order.)

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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