Small Business Loan Rates
Maximum Interest Rates on SBA 7A Loans for August 2018
Loan Size: Standard 7a (Repayment Term Less Than 7 Years)
Less Than $25K 9.25% (5.00% base rate + 4.25% markup)
$25k – 50K 8.25% (5.00% base rate + 3.25% markup)
Over $50K 7.25% (5.00% base rate + 2.25% markup)
Current SBA (7A) Loan Interest Rates and Explanation. The Small Business Administration (SBA) sets the maximum interest rates that banks can charge on 7A loans. The current maximum interest rate ranges from 7.25% – 9.75%, depending on the size of the loan and the amount being borrowed.
The average interest rate for small business loans will vary based on the type of loan product, the lender and your qualifications as a borrower.
Small Business Loan Interest Rates by Loan Type. SBA Loans and Traditional Bank Loans: 4% to 10% APR. Medium-Term Loans: 7% to 30% APR. Equipment Financing: 8% to 30% APR. Business Lines of Credit: 7% to 36% APR. Invoice Financing: 13% to 60% APR. Short-Term Loans:8.5% to 80% APR. Merchant Cash Advances: 40% to 150%
When shopping around for small business loans, most people ask themselves a few important questions. How much money can you get?
LOANS REPAID IN MORE THAN 7 YEARS. *The prime rate, hiked in March 2018, is 4.75%. Example: The maximum interest rate for an SBA loan of $25,000 or less, paid in less than seven years, is 8.75%. Remember that interest rates make up only part of your expenses.
Whether you have good, average or bad credit, our free tool helps you find the best business loans. Apply for funds up to $2.5 million and rates as low as 6%.
The average interest rate on a conventional small business loan is around 4% to 6%. That said, interest rates will vary across lenders, with banks typically offering lower rates than alternative or online lenders.
the maximum interest rate for 7A loans ranges between 5.75 percent and 8.25 percent. The range for CDC/504 loans is from 3.04 percent to 3.56 percent, and that includes the fees. These numbers are consistent with loans made by traditional commercial lenders.
SmartBiz (5.75% – 8% APR) Borrowing amount: $30K – $350K. Term length: 10 years. APR: 7% – 8% Interest rate: Prime rate + 2.75% – 3.75% (depending on borrowing amount) Referral fee: 2% Packaging fee: 2% Guarantee fee: 0% – 2.25% Bank closing costs: ~$450.