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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