What are 7(a) loan interest rates/terms/fees?
If you are successful in getting a 7(a) loan, what can you expect with reference to terms, rates, fees, etc.
- Loans can range from $250,000 to $2M
- Interest rates are generally between 1%-2.75% but can go up to 4.75%
- The guarantee fee can vary (depends on lender)
- Fees that are not charged to loan applicants include: processing, origination, application, points, brokerage, bonus points, etc.
- Terms for repayment vary, but generally fall into these categories:
- Real Estate – up to 25 years
- Working capital – 7 to 10 years
- Machinery and Equipment – depends on the useful life