98-34189. Small Business Administration; Interest Rates

[Federal Register Volume 63, Number 248 (Monday, December 28, 1998)]
[Notices]
[Page 71536]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34189]


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SMALL BUSINESS ADMINISTRATION


Small Business Administration; Interest Rates

    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 percent for the October-December quarter of FY 99.
    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. The initial rate for a fixed rate loan shall be the legal rate 
for the term of the loan.
Jane Palsgrove Butler,
Associate Administrator for Financial Assistance.
[FR Doc. 98-34189 Filed 12-24-98; 8:45 am]
BILLING CODE 8025-01-P