Hey all, I have an SBA loan for a little over $500,000. My interest is 11.5% with 10 year terms. Majority of my $9,600 monthly payment is interest.
What can I do to lower my interest? I dont know how the government can possibly understand how a small business can survive with such high interests.
Does anyone know of any private lenders? Other banks that will exponentially decrease this?
I’m struggling and November was not a great month for us…
Curious about that as well. Adjustable rate SBA loan sounds bonkers but surely this guy didn’t sign on at 11.5.
They are all AR, I think they stopped doing fixed rates several years ago.
It depends on the bank offering the loan. Online and FinTech lenders such as LiveOak sell off their debt, so they need an adjustable rate. Brick and mortar banks can still offer a fixed rate, or fixed for five years, then floating option.
We used a preferred lender who services their own SBA loans. Interest rate is killing us…
May look at a regular bank but they usually want like 70-80% of the loan secured against hard assets afaik.
Yuck, we’ll def scratch that off the list.
Most banks won’t lend you any money as it’s deemed too risky. 7a is the only realistic option for either working capital or for a small business purchase.
Why would you be looking at a 7a loan if you have other options?
Get the SBA loan and then refi. That’s what I did