What makes us different?

Wakarusa Valley Development, a non-profit organization, partners with the U.S. Small Business Administration to meet the financing needs of growing small businesses throughout the state of Kansas.

We provide small businesses long-term, fixed-rate financing to acquire real estate and equipment through the SBA 504 Loan Program. Additionally, with our SBA 7(a) Loan packaging services we can help small businesses gain access to capital and assist area lenders in building relationships by meeting their borrowers’ needs.

Whether you are a small business owner or a dedicated Kansas lender, we will provide the right SBA lending solution for you.

Our News

25-Year Debenture Announcement

SBA officials announced that the Office of Management and Budget (OMB) has cleared the way for the issuance of 25-year debentures in the SBA 504 loan program. This will allow small business borrowers a longer-term option in addition to the existing 10 and 20 year loan products. Improved cash flow is of vital interest to all businesses, especially those served by the 504 program, and the loner maturity is a vehicle that can serve that purpose.

The new 25-year debenture is a FY18 initiative and the details are still being finalized by SBA. While the timeline specifics have not been announced it is likely the launch will not occur until after the first quarter for FY18. 


Historic Low 504 Loan Pricing and Mitigated Risk

Most people would agree, when prices are good it is a good time to buy. For the month of September, the effective rate on 504 loan is 4.08% fixed for 20 years and 4.28% fixed for 10 years. Rates have been consistently good for several months, yet these are the best rates we have seen in years.

The 504 loan product has been a main stay in economic development through fixed asset financing for years. The reason for it's success can partly be attributed to the key advantages it offers both borrowers and lenders.

The key advantages it offers borrowers include a low down payment, a low fixed rate (thus a hedge against rate fluctuations) and the inclusion of most soft costs. For the lender, the 504 loan product offers limited credit and concentration risk while still meeting their customers' needs. In addition, Wakarusa Valley Development will shoulder the underwriting and packaging of the loan!

Given these advantages and our current economic cycle, low pricing and mitigated risk go well together, don't you think? If you have a prospective project, give us a call. Let's keep our momentum in moving our community forward.


504 Debt Refinance Program Requirements

As we announced in December, SBA will permanently reinstitute the 504 Debt Refinancing Program. As promised, here are the new rules and requirements to the program:

What is the Debt Refinancing Program?
Under the program, small business will have the ability to restructure a portion of their debt at low fixed interest rates up to 20 years.

Statutory Changes:
The Act made the following statutory modifications to the 504 Debt Refinancing Program:

- The 504 Debt Refinancing Program will be in effect only in any fiscal year in which the subsidy cost to the Federal Government of making guarantees under the 504 Debt Refinancing Program and under the 504 Loan Program is zero.

- Elimination of the alternative job retention goal authorized previously by the Jobs Act. Accordingly, all refinancing projects must satisfy the job creation and retention requirements that apply to any standard 504 project.


- The Borrower must have been in operation for all of the two year period ending on the date of application, as evidenced by the financial statements submitted at the time of application. If the ownership of the Borrower has changed, either partially or fully during the two year period, the Borrower is considered a new business and the Borrower's debt is not eligible for refinancing under the 504 Debt Refinance Program.

- Any refinancing under the 504 Debt Refinancing Program must include Qualified Debt, as defined below. In addition, as further described below, the refinancing may also include Eligible Business Expenses, including "Business Operating Expenses" and "Other Secured Debt".

- "Eligible Fixed Assets" are one or more long-term fixed asset, such as land, buildings, machinery and equipment, acquired, constructed or improved by a small business for use in its business operations.

- "Qualified Debt" means a commercial loan:
- substantially all (85% or more) of the proceeds of which were used to acquire an Eligible Fixed Asset. If the Eligible Fixed Asset was originally financed through a commercial loan that would have satisfied the "substantially all" standard and that was subsequently refinanced one or more times, with the current commercial loan being the most recent refinancing, the current commercial loan will be deemed to satisfy this requirement
- that was incurred not less than two years prior to the date of the application
- that was for the benefit of the small business seeking the refinancing
-that has been secured by the Eligible Fixed Asset for at least two years
- for which the borrower has been current on all payments due for not less than one year preceding the date of application. "Current on all payments due" means that no payment was more than 30 days past due from either the originall payment terms or modified payment terms (including deferments)
- the Qualified Debt may consist of a combination of two or more loans, provided that each of the loans satisfies the Qualified Debt Requirements.kızılay dershane

Borrower Contribution:

- In addition to a cash contribution, the Borrower's 10% contribution may be satisfied by its equity in the Eligible Fixed Asset(s) serving as collateral for the Refinancing Project or by the equity in any other fixed assets that are acceptable to SBA as collateral.

- An independent appraisal of the fair market value of the project assets and any additional assets offered as additional collateral must be provided. This appraisal must be dated within six (6) months of the date of application.

Same Institution Debt:

- When the loan being refinanced is Same Institution Debt (bank debt) the Third Party Lender (loan lender) may modify its existing loan documents (Note, Deed of Trust/Mortgage, etc.) instead of requiring the Borrower to execute and record new loan documents for the Third Party Loan.Kuveyt Vize

Other Than Same Institution Debt:

- When the loan being refinanced is not same institution debt, SBA may permit the lender of the debt to be refinanced to assign its existing loan documents to the Interim Lender and if an Interim Lender is used, or to the Third Party Lender if not Interim Lender is used. The existing loan paylaşımlı ofis documents may be modified, as appropriate, rather than requiring new documents executed for the Refinancing Project. The Interim Lender, if any, may then assign the documents to the Third Party Lender.


- No Refinancing of loans with an existing federal guaranty (e.g. a 7(a) loan or USDA loan).

- No refinancing of loans which is already part of an existing 504 project.

- No refinancing where the creditor on the debt to be refinanced is in a position to sustain a loss causing a shift to SBA or all or a portion of a potential loss from existing debt.

The Sacramento Loan Processing Center will begin accepting applications June 24, 2016.

We are very excited about the reinstatement of this program. Call us today to discuss potential projects that may be eligible for the 504 Debt Refinancing Program or to go over any questions you may have regarding this announcement.

Also, if you would like to schedule a bank presentation of those changes to the 504 Loan Program to your lending team, please let us know!


504 Interest Rates

20 Year Rates

March 4.92%
February 4.94%
January 4.64%

10 Year Rates

March 5.11%
January 4.66%
November 4.47%

* Interest rates may vary.

Success Stories

Site developed by Sprout Design