What is the current interest rate for small business loan in Michigan?

March 26th, 2009 | by admin |
I have a project for my Intro to Business class and I need to know what the current interest rate for a small business loan is ($500,000) and I need the site the information can be found for reference. Please help, I have been everywhere here on the net and can’t find it.
Thanks in advance….

  1. 2 Responses to “What is the current interest rate for small business loan in Michigan?”

  2. By John G on Mar 27, 2009 | Reply

    Around 8.5% but varies depending on the security you have. May need to ask one of your local banks for reference information.

  3. By SA Writer on Mar 28, 2009 | Reply

    Small business loans are generally handled through the US Govt. Small Business Administration (SBA). The loan you are looking for is called a 7 (a) loan. The interest rate is tied to the prime interest rate as reported in the Wall Street Journal, and the term of the loan. If the loan is for less than 7 years the maximum interest rate is Prime plus 2.25%. If the loan is for 7 years or more the maximum interest rate is Prime plus 2.75%.

    For example, the current reported WSJ prime rate is 8.25%. If you got a 15 year business loan for $500k the maximum interest the bank could charge for an SBA guaranteed loan would be 11.00%.

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