Are you purchasing a business, applying for SBA loan, and want to better understand the loan rate (interest rate) you will be paying?  SBA has rules and regulations.  One of the rules is the loan rate may not exceed more than 2.75% over the Prime Rate.  Your next question may be:  well what is Prime Rate today?  Currently the Prime Rate is 3.25%; which means the most you will pay today is 6%; which equals 3.25% (Prime Rate) plus 2.75% (maximum over Prime Rate allowed by SBA).  The best resource to find the current Prime Rate (along with a great look at historical rates and a forecast) is at www.wsjprimerate.us  Here you will see that the record high Prime Rate was 21.5% (Dec 19, 1980 thru Jan 2, 1981); you will also see that the forecast looks like it will not change after the next meeting in June (Futures Market 97% certain Prime Rate will hold at 3.25% after the June 24 FOMC meeting).  To discuss further financing options for a business purchase, please call for free consultation.

This entry was posted on Tuesday, June 2nd, 2009 at 6:58 am and is filed under SBA Financing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.