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Navigating the Latest Trends in SBA and Commercial Loan Rates for 2024

Here's an overview of the current rates and terms for SBA and commercial lending loans:

SBA Loans

  • SBA 7(a) Loan Rates: These rates vary depending on loan size but typically range from prime + 3% for loans over $350,000 to prime + 6.5% for loans under $50,000 as of May 2024. The current prime rate as of May 2024 is 8.5%.

  • Terms: SBA 7(a) loans can have a maximum term of up to 10 years for equipment and working capital and up to 25 years for real estate. Loan amounts can go up to $5 million, with the SBA guaranteeing up to 85% for loans under $150,000 and 75% for loans over that amount.

  • SBA Express Loans: Offered within the SBA 7(a) program, these loans provide up to $350,000 with a decision usually made within 36 hours. The interest rates are generally higher due to the expedited process.

  • Microloans and CAPLines: Microloans offer up to $50,000 with interest rates ranging from 8% to 13%, while CAPLine loans, designed for businesses with short-term or seasonal capital needs, have rates up to 13% depending on the term length.

Commercial Lending

  • Commercial Mortgage Rates: As of late May 2024, commercial mortgage rates are typically starting around 5.54% for a 10-year fixed rate, with terms up to 30 years. These rates can vary significantly based on the loan-to-value ratio and other factors.

  • Multifamily Loan Rates: For loans over $6 million, rates start at 5.54% for a 10-year fixed term. Loans under $6 million have slightly higher rates, beginning at 5.95% for a similar term.

Rates for both SBA and commercial loans are influenced by broader economic indicators such as the prime rate, federal funds rate, and economic conditions like inflation. These factors affect how lenders set their rates, with adjustments made based on the risk profile of the borrower and the loan's collateral.

For further details, you might want to check specific lenders or financial institutions that specialize in these types of loans to get more precise information and personalized quotes based on your business's specific needs and financial health.

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