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Are fixed-rate SBA 7A loans a rare unicorn or a tangible reality? This blog post aims to dissect the insights shared in a recent video transcript to help you navigate the complexities of SBA loans and understand the elusive nature of fixed-rate options.
Variable Rates Dominate
The video transcript reveals a prevailing trend in SBA loans—variable rates. According to the speaker, a staggering 80-90% of SBA 7A loans are structured with variable rates, typically tied to the Wall Street Journal prime rate plus a margin. This leaves many entrepreneurs wondering if fixed-rate options are indeed a myth.
Real Estate as a Game Changer
One key revelation is that fixed-rate SBA 7A loans might not be mythical creatures after all. The speaker suggests that real estate involvement in the acquisition or business can be a game-changer. When there's a commercial real estate (CRE) element, turning the deal into a collateralized one, fixed-rate options become a viable possibility.
Specials and Introductory Rates
Another avenue for securing a fixed-rate SBA 7A loan is through banking specials. The speaker notes that some banks run promotions to boost deal flow, offering introductory rates on loans. This presents a limited-time opportunity for borrowers to lock in a fixed rate and enjoy stability in their loan terms.
The Affluent Advantage
For those with a healthy financial profile, there's a glimmer of hope for fixed-rate options. The transcript suggests that individuals with a substantial net worth, typically in the range of a few million dollars, may qualify for fixed-rate deals. However, it's acknowledged that this option is not within reach for most borrowers.
Book a Call for Personalized Solutions
In the midst of uncertainty, Beau extends an invitation to entrepreneurs seeking clarity on SBA financing. Whether you're navigating the intricacies of a 7A or 504 loan, starting a new business, acquiring an existing one, or expanding your enterprise, personalized solutions await. Beau, with over 20 years of experience in the lending industry, is ready to walk you through the SBA loan process.
Conclusion
In conclusion, the myth of fixed-rate SBA 7A loans is dispelled, revealing strategic avenues to secure stability in your loan terms. Whether through real estate involvement, banking specials, or a robust financial portfolio, opportunities exist for those willing to explore them. If you're seeking tailored advice, don't hesitate to book a call with the experienced lending professional mentioned in the transcript. Subscribe to their channel for ongoing insights into the world of financing and lending. The truth about fixed-rate SBA 7A loans is out—now it's time to make informed decisions for your business's financial future.