By: John Patterson CFP ®
Rates are “Super” right now.
No local lenders/banks reported any increases in their commercial loan rates and a few actually lowered their interest rates slightly. There is talk however of future tightening from some area Lenders
The prime rate remains unchanged at 3.5% and the 10 year T-bill started at 1.57% and had a slight uptick to 1.60%.
Commercial Real Estate (owner occupied) Interest rates for commercial loans are still fantastic right now.
– A few Banks are offering a 5 year fixed rate below 4% that are ten year term loans. Best loan right now is a 10 year fixed at 3.60% which is based on a 20 year amortization. The average bank is around 4.5% fixed for five years also with a 20 year amortization.
Commercial Real Estate (SBA Pricing)
– The best SBA 7A loan is a 25 year fixed loan at 4.52%. There is also a 20 yr fixed rate at 4.99% which is also based on a 25 year amortization.
-The Best SBA 504 rate is a 20 year term and amortized loan of 4.52%.
– The best pricing on an SBA 7a loan variable rate loan currently remains a 25 yr term/AM loan offered at rate of 5%. The average SBA 7a loan is a 25 yr term/AM loan being offered at a variable rate of 6.25 % (WSJ Prime Rate +2.75%).
Commercial Real Estate (non-owner occupied) Currently these rates for most of the Lenders are the same as the above owner occupied properties.
Machinery & Equipment Loans
Lenders are offering lots of options when it comes to how long you want your M&E loan to last?
– The best pricing currently seems to be up to a 10 year fixed interest of 3.8%. If you can handle a shorter term loan the strongest is a flat 3 year term/AM with a fixed rate of 3%. Average pricing from a good lender is going to be a 5 year term/AM with a fixed rate of 4.5%.
– If you need to go SBA the best pricing is currently a 10 year fixed rate at 5.75%. The average SBA M&E loan is an adjustable rate of Prime + 2.75% and their terms can be as long as the useful life of the M&E.
Working Capital Loans – Working capital loans can take the form of a line of credit, business credit card, or a term loan.
Line of Credit. A one year renewable line of credit with a current rate of 3.75% is the best found pricing.
Credit Card. A 7 month 0% introductory rate credit card is the best right now that we could find.
Term Loan. If you don’t want to be in a situation where you need to renew the loan every 12 months, the best loan program is a 5 year term/AM with a fixed rate of 5.5%. If you need to go the SBA route the best is an SBA up to 10 year fixed rate of 5.75%. Most SBA lenders are going to be at a 6.25% variable rate with a term of 7 to 10 years.
The above pricing was provided by The Best Business Loans in Town which is a local on-line marketplace, using technology to dramatically simplify the execution of shopping for business loans. They are the first stop one shops for business loans. This information was gathered from the best banks and lenders in the Florida market.
To see what terms you or your Clients might qualify for, please go to our website www.tbblit.com. Finding out is very fast and easy and normally takes 10 minutes or less.