To gift, tip, or pledge.
A gift or tip.
From Latin propinare (to drink to someone’s health, to present), from Greek propinein (to drink first, to give), from pro- (for, before) + pinein (to drink).
TIP OF THE WEEK
SBA loans have propined small business in protean ways.
Lender and borrower fees for both the 7(a) and 504 loan programs through September 30, 2021 are waived. For 7(a) this includes the up-front guaranty fee and the ongoing fee.
SBA payments of P&I on the first 6 months of newly approved loans will resume for all loans approved between February 1 and September 30, 2021, capped at $9,000 per month.
If however a 7(a) loan is used to refinance an existing 7(a) loan that had previously benefited from a CARES Act payment subsidy, the new loan will NOT receive the P & I payments from SBA for 6 months.
PRIME RATE= 3.25%
SBA 504 Loan Debenture Rate for January
For 20 year debentures, the debenture rate is only 1.18% but note rate is 1.207% and the effective yield is 2.496%.
For 25 year debentures, the debenture rate is only 1.28% but note rate is 1.299% and the effective yield is 2.540%.
AHEAD OF THE YIELD CURVE
The Federal Reserve continues to propine borrowers after its last meeting on monetary policy.
Policy hasn't changed but the Federal Reserve's economic assessment has been downgraded a notch. In contrast to December's statement that said economic activity and employment had continued to recover, January's statement says these factors have "moderated" in recent months with weakness "concentrated" in sectors most exposed to pandemic effects.
So what’s the prognosis on interest rates?
Eurodollar futures settle at a three- month lending rate that has averaged about 22 basis points more than the Fed's target over the past 10 years.
Here is a summary of what the market expects for Eurodollar futures based upon the pit-traded prices at the Chicago Mercantile Exchange:
What does all this mean?
I don’t know.
The prognostication appears to reflect interest rates protracting propitiously.
The long end of the yield curve implies that the pace may indeed improve.
Keep your eyes and ears open for this week’s auction of the 30 year Treasury bond.
The 30-year yield on Friday climbed to levels last seen in March 2020. It was last up 4.9 basis point at 1.957%,
At last month’s auction of $24 billion in 30 year Treasury bonds, the high yield was 1.825%.
The yield curve is getting steeper.
The calendar propines us with a three day weekend.
The Federal Reserve has promulgated that these are our holidays for 2021:
Washington's Birthday February 15
Memorial Day May 31
Independence Day July 4
Labor Day September 6
Columbus Day October 11
Veterans Day November 11
Thanksgiving Day November 25
Christmas Day December 25