Fixed-Rate SBA Debt?

by a searcher from Baruch College-The City University of New York - The Zicklin School of Business

4 months ago

I've been hearing recently of some SBA lenders offering fixed-rate debt rather than the typical floating rate loans. Has anyone utilized this before, or know which lenders offer this product?

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intermediary from University of Florida - Warrington College of Business Administration

You can always pay down the loan early. If the numbers work, then take the variable rate if you think rates will go down. That being said, if you can get a fixed rate at 5% or something crazy like that...take it and run!

4 months ago | like reply | 0 likes

investor from University of California, Berkeley - Haas School of Business

I would stay away from fixed rates in the current interest rate environment. Rates will likely go down from here, so you don't want to get locked into a fixed rate when interest rates have topped out. I was looking for a fixed rate SBA loan 3 years ago when rates were low. At the time, lenders generally didn't like them (or quoted very high rates) because their profit margin on fixed rate loans was much lower when they resell the secured portion on the secondary market.

4 months ago | like reply | 1 like

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