The SBA and the Fed

Today, the Federal Open Market Committee said that it will continue to keep interest rates low for an "extended period."

The key language about rates stayed the same: "The Committee ... continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period."

It would appear that the savings from the low interest rates available with the SBA 7(a) loan program should continue for an “extended period.”

So what is the current rate on a SBA 7(a) loan? Here's the answer from the SBA:

http://www.sba.gov/mostrequesteditems/CON_FAQ10.html

Currently, most lenders are offering a rate of Prime plus 2.75%.

For the complete release from the Federal Open Market Committee, go here:

http://www.federalreserve.gov/newsevents/press/monetary/20100428a.htm