Posts tagged ‘sba 7a loan’

Due to the current credit crisis many borrower are considering SBA 7(a) loans for the first time and are surprised on how the third party fees add up. And this is without the notorious SBA guarantee fees, as they have been temporally waived via President Obama’s Stimulus Package. The SBA guarantee fee is normally 2.75% of 75% of the loan amount… This is temporally gone.

Borrowers that compare a conventional commercial mortgage to the SBA 7(a) loan will find many additional fees that they may have never heard of. For example, packaging fees, though not required are typically charged by all banks. Sometimes this service is hired out to a third party, other times putting together the file is handled by the bank loan officer. The typical packaging fee is $2,000 – $5,000, depending on the complexity and size of the loan request.

Continue reading ‘SBA 7 (a) Loans – They’re Expensive’ »

SBA 7A loans are one of the best finance solutions to business owners, in the market today. There are two primary reasons for this – value and viability.

As commercial real estate values continue to decline the SBA 7A loan offers the highest financing available in the business, at 85%. Conventional bank loans in contrasts are normally capped at 65% loan to value.

Continue reading ‘SBA 7A Loan, The Solution’ »