Wednesday, February 23, 2011

SBA 7(a) loans with variable rates

SBA 7(a) loans have variable rates tied to prime. Typically the rate can be up to prime plus 2.75%. It will usually adjust on a monthly or quarterly basis depending on the lender.

The idea of a variable rate may sound terrifying to some, but the prospects of increases in interest rates are far off. To get an idea of how long you can take advantage of the variable rate of a SBA 7(a) loan, you might want to go here:

When will the Fed raise rates?
by CalculatedRisk on 2/21/2011 05:08:00 PM
Short answer: it is very unlikely that the Fed will increase the Fed funds rate this year.

The earliest the Fed will raise rates? It could be later in 2012 or even later ...


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