SmartBiz Loans makes applying for an SBA 7(a) loan fast and easy
LOANS UP TO
7.00% - 9.25%*
10 - 25 years
* SBA loans from SmartBiz marketplace banks have a variable rate of Prime Rate plus 1.50% to 3.75%.
SBA Loan Interest Rates
Loans offered through SmartBiz marketplace banks 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 9.25% (Prime Rate + 3.75%)
Working Capital and Debt Refinance loans between $50,000 and $350,000 have a variable interest rate currently at 8.25% (Prime Rate + 2.75%)
Commercial Real Estate loans between $500,000 and $5,000,000 have a variable interest rate currently at 7.00% (Prime Rate + 1.50%)
The current Prime Rate, determined by market conditions and set by the Federal Reserve Board, is 5.50%. 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 SmartBiz 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. The SBA does not require the use of an Agent for Packaging Services or to refer a loan application in order to apply for an SBA loan. SmartBiz clients choose to hire SmartBiz for a variety of reasons including making the packaging process easier and faster than a traditional bank, and increasing the likelihood of finding a bank that says 'yes'.
Fees for Working Capital and Debt Refinance Loans
For 7(a) loans in the amount of $150,00 or less, the SBA fee is 2% of the guaranteed portion of the loan OR 1.7% of the loan balance.
Exception: For 7(a) loans in an eligible Rural Area or HUBZone the guarantee fee is reduced by about 67%.
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.
For our services, SmartBiz 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 SmartBiz have no prepayment penalties. You can pay off your loan any time 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.
SmartBiz 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 SmartBiz, the current APR is
For a $350,000 SBA Working Capital loan through SmartBiz, the current APR is
For a $1,500,000 SBA Commercial Real Estate loan through SmartBiz, the current APR is