The SBA and PROficuous

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.