Current SBA Rates

October 06, 2023

by a searcher from Wake Forest University in Philadelphia, PA, USA

Hi all,

I have ~$3mm acquisition under LOI and am currently looking for a SBA 7a lender (seeking 90% financing). Was curious what interest rates folks are seeing in the market today. My understanding was that all providers generally price at Prime + 2.25% - 2.75%, however, have recently had two regional banks initially quote me at around 7-8% fixed. Has anyone heard of this before?

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Reply by a lender
from University of Southern California in Los Angeles, CA, USA

We work with two SBA lenders that offer fixed rate financing tied to the 10-year treasury, not Prime. Right now that is 7.63%, fixed for 10 years. A full 10% or more downpayment will need to be made. Good post close liquidity of 10% will also be needed. Feel free to email me at redacted and I can introduce you to these lenders.

Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

There are some regional banks that will quote fixed rates. The biggest issue is that those Banks tend to have much more conservative underwriting guidelines and it may be harder to get your deal done with them. The more aggressive SBA lenders typically are pricing between 1.50% to 2.50% over Prime right now from everything I am seeing. Those lenders are taking on a bit more risk and are not as conservative as the handful of regional or national banks offering fixed interest rates. My recommendation would be to have another horse in the race to be sure you do not get stuck if you go down the fixed rate route.

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