SBA loans have some of the lowest rate options available to US Small Businesses.
Even though the SBA regulates loan rates, credit issuing banks set their own rates with borrowers. So, not every bank will have the same SBA lending rate. That’s why it’s so important to work with a trusted SBA loan brokerage like FastwaySBA.
Rates on small business loans that are guaranteed by the SBA vary based on the SBA loan type and loan amount, but they are most usually based on Prime Rate. This means that rates are always changing relative to a fluctuating Prime Rate.
The SBA has rules where participating banks are required to not charge over a certain rate for SBA loans and we work with the most competitive banks to pass along the best rates to our small business clients.
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FASTWAYSBA RATES
Here at FastwaySBA we work with the Nation’s Top Lenders to offer Small Businesses the most competitive rates on SBA 7(a) Term Loans.
Currently (as of Dec 5th 2024) the US Prime Rate is 7.75%.
The majority of FastwaySBA working capital loans have interest rates that are 2.75% to 4.75% above the Current Prime Rate. This annual interest rate is variable and is adjusted monthly according to Prime Rate.
What Drives Rates for SBA 7(a) Loans
Prime Rate: The Federal Reserve setting of interest rates will affect the prime rate. Prime Rate fluctuates based on current US economic conditions.
When considering taking on debt, it's easy for any borrower to get caught up on the interest rate as a main determining factor, but keep in mind to consider all the other particular terms of the loan.
Long Term Program
For example, the terms we most commonly afford our applicants are for 10 years, which means a lower monthly payment.
Collateral Not Necessary
The SBA rules dictate that all available collateral would be secured for the note, but collateral is not deemed necessary. This means that if no collateral exists, the business can still receive funding.
No Early Exit Penalty
Most commercial term loans require the borrower to pay fees if the loan is paid off early. This is not the case with SBA loans that we arrange for our clients.
For the most comprehensive understanding of what SBA credit options are available for your business, please book a call with one of our SBA lending experts or Apply Here.
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