What is the current interest rate for small business loan in Michigan?
Feeling Froggy asked:
I have a project for my Intro to Business class and I need to know what the current interest rate for a small business loan is ($500,000) and I need the site the information can be found for reference. Please help, I have been everywhere here on the net and can’t find it.
Thanks in advance….
I have a project for my Intro to Business class and I need to know what the current interest rate for a small business loan is ($500,000) and I need the site the information can be found for reference. Please help, I have been everywhere here on the net and can’t find it.
Thanks in advance….
December 10, 2008
• Tags: Business Class, Current Interest Rate, Intro To Business, Reference, Thanks In Advance • Posted in: Homework Help
2 Responses to “What is the current interest rate for small business loan in Michigan?”
Around 8.5% but varies depending on the security you have. May need to ask one of your local banks for reference information.
Small business loans are generally handled through the US Govt. Small Business Administration (SBA). The loan you are looking for is called a 7 (a) loan. The interest rate is tied to the prime interest rate as reported in the Wall Street Journal, and the term of the loan. If the loan is for less than 7 years the maximum interest rate is Prime plus 2.25%. If the loan is for 7 years or more the maximum interest rate is Prime plus 2.75%.
For example, the current reported WSJ prime rate is 8.25%. If you got a 15 year business loan for $500k the maximum interest the bank could charge for an SBA guaranteed loan would be 11.00%.