ValueXpress is pleased to announce that the minimum loan size for its CMBS conduit program has been further reduced to $2 million nationwide. The program provides for 5-year fixed-rate, non-recourse loans secured by anchored shopping centers, urban/suburban office buildings and multi-tenant industrial properties. Amortization is based on a 30-year schedule. Properties should be high-quality assets located in primary or secondary markets. “When we announced a reduction in the minimum loan size from $10 million to $5 million in December 2009 we knew the lower loan amount would help build volume for the CMBS conduit loan program. Further reduction to $2 million will help even more,” said Gary Unkel, a ValueXpress loan originator.
1.15.10: Will SBA 7(a) Loan Limits Really Increase?
ValueXpress is not sure if or when the bill that includes an increase in loan limits for the SBA 7(a) program and 504 program will be passed. The bill, “The Small Business Job Creation and Access to Capital Act of 2009,” has four major components:
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Focus appears to be on the fourth component of the bill. Currently, the 90% SBA guaranty has been extended from December 19, 2009 through February 28, 2010, and a backlog of loans awaiting the guaranty extension was processed. The SBA plans to push for more funding to continue the stimulus measures. The U.S. House of Representatives passed a jobs bill late in 2009 that includes another $354 million to fund an extension of waived fees and increased guarantees through the end of 2010. The U.S. Senate will take up the bill when it returns from its winter recess. It is unclear whether the first three components of the bill are progressing.
“We hope that an increase in the loan limits (and corresponding increase in the guaranty) does not get lost in the focus to simply extend the 90% guaranty and the continuation of fee waivers,” commented Michael Sneden, Executive Vice President of ValueXpress. “While this is extremely important, the increase in the loan limits would greatly increase the universe of potential businesses that would be able to utilize SBA programs.”