Securities-Based Line of Credit

The Securities-Based Line of Credit (SBLOC) program

A unique way to secure a low cost, low interest rate loan is by pledging your securities portfolio (stocks, mutual funds, bonds and other securities).  You can use this Revolving Line of Credit for personal or business needs.  My personal advise is to use the money for investment purposes.

How SBLOC works

  • Your portfolio will continue to stay in your own name yet you’ll authorize its transfer into an SIPC-insured account at a top-tier US Bank/Investment firm
  • No liquidation of the assets occurs (you may still trade or sell and receive the benefit of dividends, if applicable)
  • You may draw funds up to the credit line limit and repay any amount at any time without a prepayment penalty
  • Use the funds for any purpose (except to purchase other securities)
  • No need to pass a credit or income verification (collateral for the loan are the pledged securities from your account)

SBLOC Highlights

  • Interest rates as low as 3.50% on adjustable program or higher on fixed rate program, depending on the Line of Credit amount and term of the loan
  • No yearly maintenance fee
  • Low Interest-Only monthly payments
  • Review the separate page for SBLOC FAQ’s

Collateral Loan-To-Value Available
US Equities ($10 a share minimum) up to 65%
Mutual Funds ($5 as share minimum) up to 65%
US Treasuries up to 99%
Foreign Equities up up to 65%
Restricted Stock up to 60%
Foreign Sovereign Debt (Investment Grade) up to 95%
Corporate Bonds (Investment Grade) up to 90%
Municipal Bonds up to 90%
CD’s up to 85%

Acceptable Collateral
• Equities, ETF(s) and Mutual Funds ($10 or higher)
• US Treasuries
• Foreign Sovereign Debt (AAA+ – AA-)
• Investment Grade Bonds
• Municipal Bonds
• Control or Restricted Stock

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