The Small Business Administration publishes an interest rate called the optional “peg” rate (13 CFR 120.214) on a quarterly basis. This rate is a weighted average cost of money to the government for maturities similar to the average SBA direct loan. This rate may be used as a base rate for guaranteed fluctuating interest rate SBA loans. This rate will be 5.125 (51/8 percent for the October-December quarter of FY 2008.
Pursuant to 13 CFR 120.921(b), the maximum legal interest rate for a commercial loan which funds any portion of the cost of a project (see 13 CFR 120.801) shall be the greater of 6% over the New York Prime rate or the limitation established by the constitution or laws of a given State.Start Signature
Grady B. Hedgespeth,
Director, Office of Financial Assistance.
[FR Doc. E7-19483 Filed 10-2-07; 8:45 am]
BILLING CODE 8025-01-P