Printable View
Are the interest rates for commercial SBA currently any less than 6%?
I have clients claiming they heard SBA rates are 3.25% APR now... If that's the prime rate, then isn't the bank gonna get paid??
Does anybody know of banks who do commercial SBA but charge less than 2.75% for a total of 6% APR?
Please let me know where to go with this deal...
EIDL is 3.25%. It all depends on the file. Banks will assign a premium lower than 2.75% if it is a strong file. For example, if it is 100% backed with RE, then it is common to a rate that is .50% lower or so.Quote:
Originally Posted by Fundyman
I do not speak for every SBA Bank - the SBA Guarantee is generally 2.4% to 2.60% depending on the loan size.Quote:
Originally Posted by Fundyman
https://www.sba.gov/partners/lenders...types-7a-loans
I think you are referring to the premium they assign.Quote:
Originally Posted by Yankeeman07
Guarantee Fee is a different line item. Most SBA Guarantee fees are above 3% & it is normally applied to the loan amount. Guarantee Fees are straightforward to calculate. It is just based on the loan amount.
So, if I'm getting this right, you're saying that it is very well possible to end up with a 3.75% APR on a loan backed by a flagged hotel that's performing fairly well... Correct?Quote:
Originally Posted by mistamca
SBA Rates are Prime + 2.00% to 2.75% depending on the strength of the file.Quote:
Originally Posted by Fundyman
(The SBA Bank that I rep for)
The SBA Guarantee Fee was waived for a period of time.
FYI:
https://www.sba.gov/funding-programs/loans/7a-loans
No shot. It will be a little bit north of 5% at a minimumQuote:
Originally Posted by Fundyman
OK. Thanks, Dave.Quote:
Originally Posted by Yankeeman07
Gotcha. Thanks.Quote:
Originally Posted by mistamca