SBA 7(a) loans typically have lower interest rates and longer repayment terms than a conventional bank term loan.
An SBA loan is partially guaranteed by the government in order to offer reduced risk to banks, lower interest rates for borrowers, and extended payment terms that improve a companies cash flow. These loans are considered to be the best business financing option available which is why it is often referred to as the “Gold Standard” of business lending.
- Interest Rates between 4.75% – 7%
- 10 to 20 year term
- Monthly payments
- No pre-payment penalties
These loans can be used for debt refinance, marketing, hiring, business expansion (including acquisitions), and inventory purchases.