SBA Loan

SBA Loan Interest Rates

Loans offered through the Fortune Funding Concierge  have a variable interest rate based on the Prime Rate, plus 2.75% to 3.75% depending on the size of the loan.

  • Working Capital and Debt Refinance loans between $30,000 and $50,000 have a variable interest rate currently at 8.75% (Prime Rate + 3.75%)
  • Working Capital and Debt Refinance loans between $50,000 and $350,000 have a variable interest rate currently at 7.75% (Prime Rate + 2.75%)
  • Commercial Real Estate loans between $500,000 and $5,000,000 have a variable interest rate currently at 6.50% (Prime Rate + 1.50%)

The current Prime Rate, determined by market conditions and set by the Federal Reserve Board, is 5.00%. On top of this base rate, lenders can charge additional interest rates, subject to the caps set by the SBA.

SBA Loan Fees

There are also several fees associated with SBA loans: some are charged directly by the SBA, while others are charged by lenders or agents to cover the costs of making and processing the loans. Like the interest rate, the SBA regulates what is the maximum that can be charged.

When you choose FFC to apply for an SBA loan, you appoint us as your referral and packaging agent. This means we can help you assemble and complete all the appropriate documents to apply for these loans and then refer your application to one of our preferred SBA lending banks who is most likely to approve your particular business.

Fees for Working Capital and Debt Refinance Loans

  • The SBA guarantee fee is waived for all 7(a) loans in the amount of $125,000 or less.
  • For SBA working capital loans between $125,001 to $150,000 the SBA fee is 2% of the guaranteed portion of the loan OR 1.7% of the loan balance.
  • For loans of $150,001 to $700,000, the fee is 3% of the guaranteed portion OR 2.25% of loan balance.
  • For loans of $700,001 to $5,000,000, the fee is 3.5% of the guaranteed portion up to $1,000,000 plus 3.75% of the guaranteed portion over $1,000,000.
  • The SBA offers veterans a 50% discount on guarantee fees.

For our services, FFC Loans charges a one-time referral fee of no more than 2% of the loan amount and a one-time packaging fee of no more than 2% of the loan amount for working capital and debt refinance loans.

Bank closing costs for these types of SBA loans typically add about another $450 and include standard bank fees though additional 3rd-party report charges may apply.

Working Capital and Debt Refinance loans through FFC have no prepayment penalties. You can pay off your loan anytime with no additional cost.

Fees for Commercial Real Estate Loans

SBA 7(a) commercial real estate loans up to $5 million have a guarantee fee paid to the SBA between 3% and 3.75% depending on the loan amount.

  • For loans of $500,000 to $700,000 the fees are 3% of the guaranteed portion OR 2.25% of loan balance.
  • For loans of $700,001 to $5,000,000: 3.5% of the guaranteed portion up to $1,000,000 plus 3.75% of the guaranteed portion over $1,000,000.
  • The SBA offers veterans a 50% discount on guarantee fees.

FFC charges no more than a one-time 0.5% referral fee of the loan amount and no more than a one-time 0.5% packaging fee of the loan amount.

Bank closing costs also typically add about $5,000 and include standard bank fees, appraisal, and title fees.

Additional 3rd-party report charges may apply.

After the third year, there are no prepayment penalties for the remaining life of the loan. There is a 5% prepayment penalty if the loan is paid off in first year, 3% in second year, and 1% if paid off in third year.

Putting It All Together

The easiest way to compare rates and fees for various loan amounts is by looking at the APR (Annual Percentage Rate). This rate can be calculated by combining the interest rate and the loan’s associated fees.

  • For a $30,000 SBA Working Capital loan through FFC, the current APR is 10.08%
  • For a $350,000 SBA Working Capital loan through FFC, the current APR is 9.28%

For a $1,500,000 SBA Commercial Real Estate

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