Wow…the election is over and we have a new President. Thank heavens! I am not necessarily thankful that we have a new Commander in Chief and I am not necessarily thankful about the winner. This blog will probably be one the most apolitical writings you will see during this post-election season. What I am truly thankful for is that the election nonsense that has been going on seemingly since President Obama was elected in 2012 is finally over. I am thankful that all of the polling phone calls and TV coverage is kaput. Hopefully all of the clever bumper stickers will be removed and burned for fuel and hanging out around the office water cooler arguing about changes in the electoral map is over! Whew! Now we can get back to business.
So from a lending perspective, what is the immediate fallout from the election? Well…nothing really. Treasury bills bumped up slightly, raising SBA 504 loan 20 year fixed rate to 4.357%. Why did T-bills go up? Markets hate the unknown. Simple as that… I am quite sure rates will “normalize” in the coming months (not that they are abnormal now) and the 504 will become an even better deal. Business people will continue buying land and buildings. Lenders will continue hitting the pavement trying to make the loans that allow those business people to buy that land and build those buildings. It really does not matter if the D’s or the R’s won the election. As long as there is opportunity, commerce will continue. And Enterprise Development will be there to support it.
So from a lending perspective, what is the immediate fallout from the election? Well…nothing really. Treasury bills bumped up slightly, raising SBA 504 loan 20 year fixed rate to 4.357%. Why did T-bills go up? Markets hate the unknown. Simple as that… I am quite sure rates will “normalize” in the coming months (not that they are abnormal now) and the 504 will become an even better deal. Business people will continue buying land and buildings. Lenders will continue hitting the pavement trying to make the loans that allow those business people to buy that land and build those buildings. It really does not matter if the D’s or the R’s won the election. As long as there is opportunity, commerce will continue. And Enterprise Development will be there to support it.
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