For funds exploring the SBA’s Accrual Debenture program and for funds now licensed as Accrual Debenture SBICs, please use the following steps to access the SBA’s interest rate calculator (“SBA Debenture Calculator”) along with the current interest rate for Accrual Debentures from the Federal Home Loan Bank of Chicago (“FHLBC”):
Step One
The FHLBC’s SBA Debenture Calculator is nested within the SBA’s instruction memorandum about leverage draw requests: Instructions for Debenture Draw Application | U.S. Small Business Administration. Please download the instructions file.
Step Two
A hyperlink to the FHLBC’s SBA Debenture Calculator is found under the “Fees and Interest Rates” section on page two: Click the link which brings the user to the form hosted by the Bank. The link is also provided here for your convenience: SBA Debenture Calculator.
Step Three
In the upper right portion of the FHLBC’s Calculator is another hyperlink, “Accrual -PDF” that is also hosted by the Bank. When the user clicks this second link, data appears that includes the FHLBC’s current daily interest rate for accrual debentures and the 10Y Accrual Factor Estimate. The link to the “Accrual-PDF” is also provided here: SBA_Rates_AD.pdf.
- The underlying formula used to calculate the FHLBC’s daily interest rate for accrual debentures is not included within the Accrual-PDF.
- The “10Y Accrual Factor Estimate” represents the future value of a debenture assuming the SBIC makes no repayments to the SBA during its 10-year life.
- The “Estimated Net Proceeds” box at the bottom of the form calculates the present value of the debenture.