Loan Rates in SBA 7(a) Loans
Loan Rates in SBA 7(a) Loans
SBA 7(a) loans comprise of small business loans that range to a maximum of $5 million. They are among the most popularly sought loan programs under the SBA because the loan amount can be utilized for a wide array of business purposes including commercial real estate and working capital. These loans come with fixed terms.
The SBA loan requirements include fixed rates for the upper limits in the SBA 7(a) loans. The higher limits of the interest rate are coupled with the prime rate which forms the benchmark interest rate, which holds effective over business loans, student loans, home loans, and other types of loans. The higher limits if the interest rates are as follows.
For Loan Maturity below 7 Years
- Below $25,000—Prime + 4.25%
- Between $25,000 and $50,000 –Prime + 3.25%
- Above $50,000 – Prime + 2.25%
For Loan Maturity beyond 7 Years
- Below $25,000—Prime + 4.75%
- Between $25,000 and $50,000 –Prime + 3.75%
- Above $50,000 – Prime + 2.75%
The ongoing Prime rate is 5.50%. Therefore, the rates lie between 7.75% and 10.25% as of now. However, Prime Rates change fast, and it is advisable to check the latest prime rates prior to proceeding with the loans.
