October 2021
SBA Starts Fiscal Year 2022 with Good News!

October 1st marked the first day of the new fiscal year for 2022. Aside from record volume and rates continuing to hover at record lows, there is more good news to share for loans approved during this fiscal year.

Business As Usual!

First, we are happy to report that the 504 program is open again and it is business as usual! On September 7th, (23 days before the end of the fiscal year 2021), the 504 program reached its maximum lending limit of $7.5 billion. This unprecedented event meant that even though projects were still being “approved” by the SBA, they were not being authorized. At that time, we were informed we would not receive formal loan authorizations until the funds were replenished on October 1st.

We are now starting to see loans being authorized and we have been told that, due to the 504 loan program operating at zero subsidy to the American taxpayer, that the Small Business Committee of both the House and Senate are working on bipartisan legislation to increase the maximum amount of the 504 program to ensure the industry never runs into this situation again. This is excellent news given the historically low rates and demand for the program. 

Reduction of Ongoing Fee Offsets Expired Fee Relief!

Second, although fee waivers (that were part of the Covid Relief Bills) sunset on September 30th and are no longer available, the good news is that due to the strong performance of the SBA 504 portfolio, SBA reduced the ongoing guarantee fee for loans approved in FY 2022 by .2042% or 20.42 basis points. The ongoing fee is incorporated into the already low fully effective interest rates (quoted above) and the reduction of this fee more than offsets the loss of the fee waivers over the long haul and actually saves the borrower more money over the life of the loan!

If you have a customer that needs to refinance existing debt or is looking to expand and grow their current facility, buy a new one, or needs to purchase machinery or equipment, there has never been a better time and we urge you to give it a try. If you have questions on this topic or would like to discuss a specific project with one of our loan officers, please do not hesitate to reach out.
Bradd Pierce
(616) 323-1277
Kelly Schramski
(734) 821-7280
Nik Hoezee
(616) 208-9849
GLCF's 2021 Lenders Cup Tournament!

And the Winner Is...

Greenstone Farm Credit Services
From Left to Right: Scott Simon, Derek Tahaney, Eric Smith, and Mitch Schafer
On September 29, 2021, GLCF hosted our annual golf outing featuring our Lenders Cup Tournament. We had a beautiful Fall day to work with and the event was played at Thornapple Point Golf Course located in Grand Rapids.

This complimentary event is attended by board members, loan committee members, and lenders that have had projects authorized with GLCF over a one-year time period. To compete, the lenders have the option to put a team together comprised of other bank or credit union employees. This year, the following competed:

Choice One Bank, Comerica Bank, Grand River Bank, Greenstone Farm Credit Services, Macatawa Bank, Oxford Bank, State Savings Bank, and West Michigan Community Bank

Greenstone Farm Credit Services was this year's winning foursome shooting 13 under par and beating last year's winning team, West Michigan Community Bank!

Previous Year Winners!

2021 - Greenstone Farm Credit Services
2020 - Cancelled Due To COVID
2019 - West Michigan Community Bank
2018 - Independent Bank (Traverse City State Bank)

State Savings Bank is GLCF's Lender of the Year!

Fiscal Year 2021 has come to an end and we would like to thank all the lenders that had loans authorized through our organization over the course of the fiscal year. One bank; however, did have the most loans authorized over the course of the year and will be the recipient of our Lender of the Year Award.

Congratulations State Savings Bank!
GLCF Welcomes Sue LeBlanc!
We are pleased to welcome Sue LeBlanc to the GLCF team. Sue works in our credit department as a Loan Underwriter responsible for underwriting and submitting loans to the SBA for approval. Sue is excited to be part of the GLCF team since we are a small, tight-knit organization. She especially enjoys all aspects of commercial real estate in the West Michigan market. 

Originally from Byron Center, Sue brings thirty-plus years of experience from various financial institutions to our organization and more recently spent twelve years with Grand River Bank.
In her free time, Sue spends the majority of her time with her two grown children, playing board games, traveling, and enjoying yard work. Welcome, Sue!