SBA Microloans Terms
Terms for an SBA Microloan will include an interest rate, and a time period in which the loan must be paid in full. The SBA Microloan is funded through a non profit intermediary. The intermediary will determine the final interest rate. You can expect to pay between 7%and 14 %, depending upon both the intended use of the loan and the risk.
Small Business Administration finance rates are determined in part by the risk of a particular loan. We suggest that the small business owner compile the most attractive loan package possible. Fortunately, the non-profit intermediary will help you with this at no charge.
The length of a loan is based upon loan amounts that range from $100 to $35,000. Most of the loans that are funded through the Microloan program are between $10,000 and $13,000. The maximum length is 6 years; however, the term length will be shorter for smaller loan amounts.
Keep in mind that this is not like a credit card. Credit cards are susceptible to term and interest rate changes based on outside influences and the borrower’s changing credit situation. Most small business owners have seen their credit card limits reduced, and the interest has risen to the maximum amount the law will allow. With SBA Microloan terms in place, the owners of small businesses can count on a monthly budget, plan expansions and purchases with a fixed payment amount.
Educate your self about the SBA Microloans and what it can do for your business
If you are asking What is a Microloan the read this article