According to information from the US Census, there are more than 27 million registered small businesses in the US. And, according to the same source, these firms, along with more than 120 million employees, are the driving force behind the US economy.
Thanks to the support of the SBA (Small Business Administration), these businesses can receive sufficient funding for the growth of their operations.
SBA-Set Interest Rates
The SBA offers loans that come with either fixed or variable interest rates. Apart from the money up for borrowings, the interest rates would also depend on the size of the loans. Regardless, the SBA sets the interest rates – and, these rates should not go above the set rate.
SBA loans in Ogden offered by companies such as Wasatch Peaks Credit Union for business owners are beneficial, provided their businesses could outplay the interest rates on their loans. Mainly, it benefits them because the cost of borrowing money would be significantly lower than the rate of return.
Therefore, it is important that they note their loans’ interest rates, and make sure that these will not go higher than the rate of return for their business.
SBA 7A vs. SBA 504
One type of SBA loan is SBA 7A. SBA loans for business owners are multi-purpose loans, which you can use to finance start-up, buy capital (working) or fixed assets, purchase real estate, refinance debt, and buy equipment. Usually, the interest rates on these loans range from 6.25% to 8.75%.
Meanwhile, SBA 504 loans are another type. The sole purpose of these loans is to finance (or refinance) real estate. Interest rates for this kind of loans range from 3.98% to 4.54%.
After learning how beneficial the low-interest rates on SBA loans can be, submitting an application for a loan through the SBA is worth considering. Just make sure you meet the requirements.