What costs are associated with an SBA loan?
By statute, the maximum rate charged is 2.75% over the National Prime Rate for loans with maturities of seven years or more, and 2.25% over national prime rate for loans with maturities of less than seven years. The SBA itself charges a guarantee fee based on the loan amount, which is the only cost associated with the benefits of long term SBA borrowing. This fee can be financed as part of the loan proceeds. In addition, as with any other loan, the borrower will be responsible for direct processing costs such as title insurance, appraisals and other closing costs.
