INTEREST RATES:
Interest rates on SBA loans are monitored and restricted by the SBA. Most SBA loans feature a variable interest rate which is adjusted as prime changes.

The maximum allowable interest rate that lenders may charge on loans greater than $50,000 is LNY Prime + 2.75% .

Loans of less than $50,000 may be charged slightly higher rates.

MATURITY:
The maturity of an SBA loan will depend on the intended use of proceeds.

If your loan proceeds are to be used for working capital, that loan will probably be for a term of seven years.

If you are utilizing your SBA loan to purchase real estate, the term of the loan will probably be for 25 years.

If you are planning to use your SBA loan proceeds to purchase machinery and equipment, furniture and fixtures, inventory, to make leasehold improvements, or to refinance existing debt, your loan will typically be for a ten year term.

If you are using part of your SBA loan proceeds for working capital and another portion for the purchase of machinery and equipment, the lender will apply a "mixed use" formula to determine the term of your loan. You can anticipate the term being somewhere between seven and ten years.