7(a) Rates, Terms and Fees
Rates
Interest rates on 7a Loans are determined in negotiations with the lender. They can be fixed or variable, but usually cannot exceed Prime +2.75%
Maturities depend on how the money will be used:
- Working Capital 7-8 Years
- Machinery and Equipment 8-10 Years
- Real Estate Acquisition 10-25 Years
Fees
The following statutory fee applies to the 7a Loan:
- A minimum of 2% of the guaranteed portion of SBA
- Alacom Finance also charges a packaging fee, which is based on the hours of work required to prepare 7a loans for submission to SBA
