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…
To add to this, the government understands how small business work and is purposefully try to slow them down to cool the economy off.
Nonsense
The three branches of federal government are legislative (makes laws), executive (enforces law), and judicial (interprets laws).
No branch is mutually exclusive.
For example, executive cannot arbitrarily decide to say no more SBA loans to auto mechanics unless they service EV’s.
There are laws governing SBA. Challenging them requires judicial and changing them requires legislative.
If government wants to cool down economy, it would target consumer spending (67 percent of GDP) not small business.
The Federal Reserve controls interest rates and is independent of all other branches of government on purpose. If I’m wrong please someone correct me.
You might think it’s nonsense, but that’s the way it is.
The Fed monitors risk and uses economic policy to help ensure healthy economy and stable banking system.
To temper inflation, it modulates prime interest rate.
Just several years ago, client would have loan amount $4.0 million at five or six percent. Then it became eight and then ten. Now it’s as much as 13.5 percent (prime + 5.0).
That’s a whopping 50 percent increase in monthly mortgage payment. So, mom and pop sit on sideline.
What causes inflation; deficit spending, not the Fed.
But they want mom and pop to sit on the sideline. That’s what I’m getting at.