Does an SBA loan really come with a $10,000 fee +2.5% + interest on the laon?
I talked to a banker today about an SBA loan for a business. I may have misunderstood the guy, but I was shocked at the fees. If the loan is $250,000, I’m being advised there would be a $10,000 bank fee, a 2.5% sba fee, plus the banker is asking for $1,000 check. Does this seem normal? Thanks
Thanks for your question. The situation you’ve described does not sound atypical for SBA loans. These loans can be very advantageous for small businesses but they usually have a very in-depth underwriting process. It’s also normal for lenders to charge some fees up front, though some also wrap some fees into the total loan so you can pay them off over time.
If you’d like to read more on SBA loans, be sure to check out our article on SBA Loan Rates (here: https://fitsmallbusiness.com/sba-loan-rates/) and our SBA Loan Calculator article here: https://fitsmallbusiness.com/sba-loan-calculator/. Both of these articles provide lots of information on SBA Loans, rates, costs, and the underwriting process.
Hope this helps,