SBA Fixed Rate for 10 Years!

SBA Fixed Rate for 10 Years!

This just in!  Coffman Capital just obtained a lender term sheet (not yet a commitment) for an SBA 7(a) Business Acquisition Loan with a 10 Year Fixed Rate below 8%!

This is because this particular lender (one of many we use), which has tougher equity injection guidelines, uses a Treasury-Based interest rate instead of Prime.  We can get the lowest cash injection amounts available today, but sometimes a lender who requires a more traditional injection can offer outstanding terms!

You may have seen that the Federal Reserve is expected to lower rates soon.  Today Prime Rate is 8.5% which follows the Federal Funds Rate (“Fed rate”) with an approximate 3% spread.  Most SBA lenders make 10 year loans for business acquisitions without real estate (Real Estate allows for lower rates with longer terms) using an adjustable Prime + 2.75% and can reduce it to around 2% or less with size.

If a business acquisition loan is below $500,000, you normally see Prime 2.75% or as low as 2.25%.  Loans of $800k, $1MM or more can see rates of Prime + 2 or possibly lower.

That means that all the Prime-based rates for a business acquisition without real estate, are at least 10.50% and up to 11.25%.  With a reduction in the Prime following a Fed rate drop of 0.25% to 0.50%, that would bring SBA business acquisition rates to around 10% to 10.75%.

So having a fixed rate for 10 years of between 8-8.75% depending on Treasury Index is pretty awesome!!

Please let Coffman Capital find you the best terms for your Business Acquisition Loan.  Even if we need to use a Prime-based program which is likely, we’ll still reduce the cash injection to a minimum.

Please complete our Loan Inquiry Form and we’ll get right back to you!  As always, no fee to Coffman  unless the loan closes!  

Thanks for choosing Coffman Capital for your Practice and Business Financing!

We are Ready to Help You Succeed!!