proficuous
pruh-FICK-yuh-wuhss
Profitable; advantageous; useful
from Latin proficuus beneficial
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TIP OF THE WEEK
SBA has propounded a new 7(a) Working Capital Pilot (WCP)
Program. Its effective date will
probably coincide with the release of another SBA Standard Operating Procedure.
It is promulgated to provide flexibilities bridging the
gap between the unique rules and limitations of other SBA 7(a) guaranteed line
of credits.
Its fee structure will be modeled after SBA’s 7(a) Export
Working Capital Program (EWCP).
Proficuously SSBCI and SBLGP guarantees can now be
utilized for revolving lines of credit.
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Indices:
PRIME RATE= 8.50%
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SBA 504 Loan Debenture Rate for April
For 20 year debentures, the debenture rate is only 5.38%
but note rate is 5.45619% and the effective yield is 6.767%.
For 25 year debentures, the debenture rate is only 5.38%
but note rate is 5.43481% and the effective yield is 6.695%.
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AHEAD OF THE YIELD CURVE
Prospicient prognostications proliferate with our
procurators of interest rates, the Federal Reserve.
The Fed made no change to the fed funds target rate at
its last meeting on monetary policy
The only tweak in the language of its policy announcement
is concerning job gains which "remained strong" relative to the
January assessment and which removes the January reference to moderation
relative to 2023.
Its next meeting is Tuesday April 30th and concludes May
1st.
30-Day Fed Fund futures pricing data have long been
relied upon to express the market’s views on the likelihood of changes in U.S.
monetary policy.
Here are the Futures Implied Fed Funds
Apr-30-2024
5.32750
Jun-28-2024
5.29500
Sep-30-2024
5.16500
Dec-31-2024
4.99000
Mar-31-2025
4.82000
Sep-30-2025
4.50000
Mar-31-2026
4.13500
What does all this mean?
I don't know.
In its statement, the Fed maintained that inflation
remains elevated.
The long end of the yield curve prognosticates
inflationary expectations and ultimately market rate expectations.
Last week’s auction of 30 year treasury bonds the high
yield was 4.671 percent, up from 4.331 percent a month ago.
More procellous promulgations on the yield curve’s
continued inversion is profligate.
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OFF BASE
April 22nd is Earth Day.
It would be proficuous to hug a tree or catch a wave.
