what are the interest rates for a business loan up to 70,000. Are there good programs.?

Answer 1

Great question. Most business loans are based on the "prime rate". The Prime Rate is the rate at which banks lend money to their best customers. The Prime rate carries a margin of 3% above the fed funds rate, which is set by the Federal Open Market Committee. Currently the Prime Rate is 8.25%.

Usually, this rate is given to the bank's business customers in the form of a line of credit. This line is almost always collateralized by real estate. If the customer wants all 70k at one time, then that loan can be ammortized over 5 to 15 years. "Ammortizing or "Terming out" the loan could lower the interest rate and provide protection against a rising interest rate environment.

If you don't have collateral for the 70k, you are going to have a more difficult time finding someone who will finance your business. You have two options at that point:

1: The Small Business Administration (rates are variable, loan takes months to get and a bank still has to underwrite your loan)

2: An unsecured line of credit ( rates are within the 12% - 16% range and most banks won't go over 25k unsecured without credit scores over 720 and a high checking account balance)

If you have any questions, call my branch at 813-681-2866.

Good Luck!

Frank

Answer 2

The only way a bank is going to loan $70,000 is if you have assets in the $300,000 to $500,000 range, like a house. Even then it will be expensive. It's best if you don't have the money to take out a home equity loan against your house or something like that to fund it. Especially since most businesses fail.

Answer 3

That's a good question, I was wondering the same thing myself

Answer 4

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Answer 5

Not totally sure about this