96-1346. Interest Rates

[Federal Register Volume 61, Number 18 (Friday, January 26, 1996)]
[Notices]
[Page 2566]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-1346]



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SMALL BUSINESS ADMINISTRATION

Interest Rates

    The Small Business Administration publishes an interest rate called 
the optional ``peg'' rate (13 CFR 122.8-4(d)) on a quarterly basis. 
This rate is a weighted average cost of money to the government for 
maturities similar to the average SBA direct loans. This rate may be 
used as a base rate for guaranteed fluctuating interest rate SBA loans. 
This rate will be 6\1/4\ percent for the January-March quarter of FY 
96.
    Pursuant to 13 CFR 108.503-8(b)(4), the maximum legal interest rate 
for a commercial loan which funds any portion of the cost of a project 
(see 13 CFR 108.503-4) shall be the greater of 6 percent over the New 
York prime rate or the limitation established by the constitution or 
laws of a given State. The initial rate for a fixed rate loan shall be 
the legal rate for the term of the loan.
John R. Cox,
Associate Administrator for Financial Assistance.
[FR Doc. 96-1346 Filed 1-25-96; 8:45 am]
BILLING CODE 8025-01-P