Fed Cuts Interest Rates – Lowers SBA Loan Costs!

The Federal Reserve has recently lowered the Federal Reserve Rate by 0.5%!  As a result, the Prime Rate is 8.0%, (formerly 8.5%) which follows the Federal Funds Rate (“Fed rate”) with an approximate 3% spread.  That reduces costs for borrowing throughout the credit markets, and now buying a practice using a Prime-Based SBA 7(a) loan is now lower – not to mention somewhat easier to qualify.

That means that Prime-based rates for a business acquisition (without real estate), now range from 10.75% to as low as 10.0% or possibly lower.

Most SBA lenders make 10-year loans for business acquisitions without real estate (Real Estate allows for lower rates with longer terms) using a standard spread of Prime + 2.75%.  If a business acquisition loan is below $500,000, Coffman Capital’s lenders can range from 2.25% to 2.75%.

Loans of $800k, $1,000,000 or more usually have rates of Prime + 2 or less.

However – This just in!  Coffman Capital can now offer SBA 7(a) Business Acquisition Loans with a 10 Year Fixed Rates below 8%!  This is not a Prime-Based rate, and is based on 10 Year Treasury rates.

This program has somewhat more stringent equity injection guidelines, and uses a Treasury-Based interest rate instead of Prime.  It still allows for gift funds to be used, and allows a normal seller note to reduce the amount you have to put down.  Please call Coffman Capital to learn about how seller financing can reduce your cash injection for all programs.

We can still get you the lowest cash injection amounts available today, often only 5% of Project cost with seller financing added, but using Prime-Based rates – so there are options depending on your situation.

Bottom Line: Getting a 10-Year fixed rate of approximately 8% more or less (depending on Treasury Index) instead of an adjustable Prime-Based rate over 10% is pretty awesome!!

Please let Coffman Capital find you the best terms for your Business Acquisition Loan.  You will always be given the opportunity to Minimize Your Cash Injection with the Lowest Interest Rates.

Please complete our Loan Inquiry Form and we’ll get right back to you!
Or call us at 813-891-1811 ext. 101.
As always, there is no fee to Coffman unless the loan closes!

Thank You for choosing Coffman Capital for your Practice and Business Financing!

We are Ready to Help You Succeed!!