medium · Asset-Backed Securities
How do SBA 504 debentures differ from SBA 7(a) loans regarding prepayment behavior?
- 504 debentures have 'yield maintenance' that makes them identical to 7(a)
- 504 debentures are fully prepayable at par at any time
- 504 debentures have significant prepayment penalties
- 504 debentures never prepay due to government rules
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