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 Start Printed Page 17454be used as a base rate for guaranteed fluctuating interest rate SBA loans. This rate will be 4.000 (4) percent for the April-June quarter of FY 2010.
Pursuant to 13 CFR 120.921(b), the maximum legal interest rate for any third party lender's commercial loan which funds any portion of the cost of a 504 project (see 13 CFR 120.801) shall be 6% over the New York Prime rate or, if that exceeds the maximum interest rate permitted by the constitution or laws of a given State, the maximum interest rate will be the rate permitted by the constitution or laws of the given State.Start Signature
Grady B. Hedgespeth,
Director, Office of Financial Assistance.
[FR Doc. 2010-7716 Filed 4-5-10; 8:45 am]
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