WHEDA Small Business Lender Update

WHEDA® Small Business Lender Update - November 2006

CHANGES TO GUARANTEE AND LIDL FEES

Recently, an update that outlined fee changes to WHEDA's Economic Development Guarantees and Linked Deposit Subsidy Program was forwarded to all subscription service members. The effective date of the changes was incorrectly stated. The new fees are effective immediately.

The changes are outlined below:

For guarantees approved through the Small Business, Agribusiness, and the Contractors Guarantee programs, the new fees will be:

1.5% of the guaranteed amount on loans of $150,000 or less
2.5% of the guaranteed amount on loans over $150,000

The closing fee for all guarantees approved through the Neighborhood Business Revitalization Guarantee program will increase to 2.5% of the guaranteed portion of the loan.

All WHEDA closing fees can continue to be financed with loan proceeds; however, they are not eligible for a guarantee.

The application fee for the Linked Deposit Loan Subsidy program will increase from $50 to $100.

Our WHEDA Small Business Financing manual has been updated to account for these changes.

If you have any questions, please contact Denise Martin at 608-264-6856, or e-mail her at denise.martin@wheda.com.