February 7

How to Refinance Your Variable Rate SBA 7a into a Fixed Rate SBA 7a Loan

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In the realm of small business financing, navigating loan structures can be a daunting task. If you find yourself in the realm of an SBA 7a loan with a variable interest rate, you may be wondering about your options. Fortunately, there's a strategy that might just alleviate some of that uncertainty: refinancing into a fixed rate SBA 7a loan.

Understanding the Landscape

To begin, let's dissect the current scenario. You might be holding an adjustable rate SBA 7a loan, perhaps with a 2.75 margin, pushing your interest rate up to 11.25%. The fluctuating nature of variable rates can lead to uncertainty, especially in today's economic climate.

Exploring Your Options

So, what avenues can you pursue? Refinancing is the key term here. You could potentially transition from your existing 7a loan to another 7a loan, or if commercial real estate is part of the equation, a 504 loan might be on the table. However, for the purpose of this discussion, let's focus on the 7a to 7a refinance route.

The Refinancing Process Unpacked

The journey to refinancing begins with a crucial step: obtaining a written confirmation from your current lender indicating their reluctance to refinance your loan. Once you've secured this documentation, the next milestone is demonstrating a minimum of 10% savings on your debt payments.

Leveraging Lender Offerings

Now, here's where the magic happens. Numerous financial institutions, including banks and credit unions, offer enticing options for refinancing. Some lenders are inclined to lower their margins, potentially transforming your 2.75 margin into a leaner 1.5. Furthermore, there are tantalizing fixed-rate specials in the market, offering stability in these uncertain times. Picture a five-year fixed option with a competitive rate hovering around 8.99%.

The Added Benefits

Beyond the allure of reduced interest rates and fixed-rate security, refinancing your SBA 7a loan opens doors to additional perks. For instance, you may have the opportunity to integrate working capital into the new loan, provided your cash flow aligns with the loan request.

The Road Ahead

As you contemplate the refinancing journey, it's essential to recognize the value of expertise and guidance. Professionals like Beau, with over two decades of experience in the lending industry, offer invaluable insights and support throughout the process.

Partnering with Business Ownership Coach

Beau's expertise extends beyond merely facilitating SBA financing. With a dedicated franchise division, he assists aspiring entrepreneurs in exploring various business models and franchise concepts, amplifying the spectrum of possibilities.

Conclusion: Seizing the Opportunity

In conclusion, the journey from a variable rate SBA 7a loan to a fixed rate SBA 7a loan isn't just a financial transaction; it's an opportunity to unlock savings and stabilize your business's financial foundation. By leveraging refinancing strategies and partnering with seasoned professionals like Beau, you can navigate the intricacies of small business financing with confidence.

Unlock your potential today. Refinance your SBA 7a loan and embark on a journey toward financial stability and prosperity.


If you're interested in learning more about refinancing your SBA 7a loan or exploring opportunities in business ownership, schedule a consultation with Beau at BusinessOwnershipCoach.com.


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