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  1. #1
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    Commercial SBA Rates Close to Prime?

    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...

  2. #2
    Quote Originally Posted by Fundyman View Post
    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.

  3. #3
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    Quote Originally Posted by Fundyman View Post
    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...
    I do not speak for every SBA Bank - the SBA Guarantee is generally 2.4% to 2.60% depending on the loan size.

    https://www.sba.gov/partners/lenders...types-7a-loans
    Dave Lambert
    FC Financial LLC
    dave@fcbankcard.com
    http://www.fcbankcard.com
    1-727-291-7890 (Text or Leave Message)
    Office: 727-233-1111

  4. #4
    Quote Originally Posted by Yankeeman07 View Post
    I do not speak for every SBA Bank - the SBA Guarantee is generally 2.4% to 2.60% depending on the loan size.

    https://www.sba.gov/partners/lenders...types-7a-loans
    I think you are referring to the premium they assign.
    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.

  5. #5
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    Quote Originally Posted by mistamca View Post
    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.
    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?

  6. #6
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    Quote Originally Posted by Fundyman View Post
    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?
    SBA Rates are Prime + 2.00% to 2.75% depending on the strength of the file.
    (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
    Dave Lambert
    FC Financial LLC
    dave@fcbankcard.com
    http://www.fcbankcard.com
    1-727-291-7890 (Text or Leave Message)
    Office: 727-233-1111

  7. #7
    Quote Originally Posted by Fundyman View Post
    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?
    No shot. It will be a little bit north of 5% at a minimum

  8. #8
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    Quote Originally Posted by Yankeeman07 View Post
    SBA Rates are Prime + 2.00% to 2.75% depending on the strength of the file.
    (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
    OK. Thanks, Dave.

  9. #9
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    Quote Originally Posted by mistamca View Post
    No shot. It will be a little bit north of 5% at a minimum
    Gotcha. Thanks.

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