Some Fees waived on SBA loans

Borrower and lender funding fees waived for loan approvals through September 2009

The overall effective rate on the 10 year notes to small business borrowers for projects funded in the month of May fell to a record low!

Borrower and lender funding fees have been waived for loan approvals through September 2009

For debentures funded in the month of May, the effective interest rate on 10 and 20 year notes are as follows:

20 year Note = 5.374%

10 year Note = 4.490%

Big Sky Economic Development Corporation [Big Sky EDC] is accredited by the US Small Business Administration [SBA] as a Certified Development Company to make SBA 504 Loans. Big Sky EDC assists borrowers with the process. For Information: Call Brandon Berger, 869-8403 [email protected]

The SBA 504 Loan program is a financing tool used primarily for businesses looking to expand their operations providing them with long-term fixed rate financing. This program is used for owner-occupied commercial real estate financing and/or the acquisition of certain long-term equipment (personal property). The typical financing package is structured with the borrower’s primary lender financing 50% of the total project cost, the SBA financing 40% with a 10 or 20 year note, and the borrower coming in with a minimum of 10% equity. The interest rate on the SBA portion is a fixed rate for the term of the note and historically has been at or below the bank’s rates. The borrower would have 2 separate loans, one to their primary lender and the other to the SBA. The SBA’s note would be a fixed rate 10 or 20 year note and the primary bank would set it’s own rates and terms. Because this is an economic development loan, new job creation is a requirement and helps establish how much the SBA will lend. The SBA will lend $50,000 per each full-time position created, regardless of pay scale. Therefore, if the project were to lead to the creation of 10 jobs, the SBA could lend up to $500,000 (projected # of jobs created within 2 years).

Shari Nault

Member Investor Relations – PR

Big Sky EDA-EDC

222 N. 32nd. Suite 200

Billings, MT 59101

Direct Line: 869-8406

Fax: 406-256-6877

http://www.bigskyeda-edc.org