[Federal Register Volume 61, Number 79 (Tuesday, April 23, 1996)]
[Notices]
[Page 17936]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-9876]



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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 loan. This rate may be 
used as a base rate for guaranteed fluctuating interest rate SBA loans. 
This rate will be 5\3/4\ percent for the April-June 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% 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. 96-9876 Filed 4-22-96; 8:45 am]
BILLING CODE 8025-01-M-