Summer 2023 SBA Rates - What are you seeing out there?

June 27, 2023

by a searcher from Purdue University in Phoenix, AZ, USA

Curious what rates everyone is seeing right now for SBA loan debt. Reply with your rate, region, LTV, and any terms or conditions that are notable. I am seeing a lot of prime plus 1.75% and 90% LTV right now.

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

We are a Commercial Loan Brokerage Shop with over 500 funding partners and over 50 SBA funding partners so we have our pulse on the market. Most of what we are seeing nationwide is pricing between 1.50% to 2.50% over Prime. However, it will depend on the transaction. Pricing on SBA deals does not really change based on location in the U.S. It changes based on the lender and deal risk. The stronger the deal from a Guarantor, cash flow, and collateral perspective the lower the interest rate. You are much more likely to see the rate closer to 1.50% for a primarily real estate secured deal or a deal with a loan term of 25 years then you are for a goodwill deal, which is likely to be priced around 2.50%. So this general range is fair, but again, it is going to be completely deal dependent. I can have the same Bank do a stronger deal at 1.50% over another deal with more risk at 2.50% and get them both approved in the same week. I hope this makes sense. If you want assistance pricing a specific deal, please let me know.

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