SBA 7A - what defines a great deal today?

by a searcher from University of Houston, Downtown

10 months ago

Hi all,

I am in the middle of my first time acquisition. Shopping for a loan with three different banks. Just got my first proposal in.

Please share thoughts on what are the current benchmark and what makes a good from a bad deal based on todays rates.

Proposal:

3 year fixed rate at Prime + 1.50% and prime + 2.25% floating rate for the remaining 7 years.

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6 comments

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

I recently closed a deal a Prime + 1.5% (floating). I would stay away from fixed rates as interest rates have likely peaked and may go down over the next 3 years

10 months ago | like reply | 0 likes

lender

The strength of an SBA term sheet should be measured per its likelihood to close.

10 months ago | like reply | 1 like

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