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MrsYank
She's here :)
Member since 4/07 3238 total posts
Name:
Mrs. Yank
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SBA Loans versus Personal Loans
I know that loan terms vary on a case by case basis--- DH is looking to expand his company (3rd year in operation and his credit is good) and we are looking for a business loan. The amount is small enough that a personal loan would cover it, but the interest rate would be 9%.... Wondering if the SBA loans are better- they are guaranteed- but don't want to going "rate shopping" and damage his credit...
any advice??
TIA
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Posted 2/24/12 3:04 PM  |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: SBA Loans versus Personal Loans
Just go with whoever gives you the better rate.
Keep in mind that all small business loans will most likely require a personal guarantee (meaning this loan will go on your personal credit report).
Not really a big deal... just saying.
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| Posted 2/24/12 3:10 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: SBA Loans versus Personal Loans
I would also look into a business credit card instead. Look for a 0% offer for purchases / balance transfers. With business credit cards when they send you the checks you can usually use these to write checks to yourself and use the 0% interest.
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| Posted 2/24/12 3:11 PM |
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MrsYank
She's here :)
Member since 4/07 3238 total posts
Name:
Mrs. Yank
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Re: SBA Loans versus Personal Loans
thanks!
I guess my real question is does the sba have major closing costs and do they even offer rates that are less than 9%
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| Posted 2/24/12 3:17 PM |
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Re: SBA Loans versus Personal Loans
I know teachers offers prime plus three percent on business loans. A personal, 20,000 or less would be 7.5 variable.
I would talk to your accountant because the business interest could be a write off.
Check around with the credit unions.
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| Posted 2/24/12 6:17 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: SBA Loans versus Personal Loans
Posted by MrsYank
thanks!
I guess my real question is does the sba have major closing costs and do they even offer rates that are less than 9%
An sba loan will cost about 3% . During the recovery act the fee was waived but that ended.
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| Posted 3/29/12 9:06 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: SBA Loans versus Personal Loans
Posted by MegZee
Posted by MrsYank
thanks!
I guess my real question is does the sba have major closing costs and do they even offer rates that are less than 9%
An sba loan will cost about 3% . During the recovery act the fee was waived but that ended.
Some banks will waive the fees. I have my business checking with Capital One and I know I got a phone call from them once offering a business line of credit and they were waiving fees.
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| Posted 3/29/12 10:03 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: SBA Loans versus Personal Loans
Posted by ave1024
Posted by MegZee
Posted by MrsYank
thanks!
I guess my real question is does the sba have major closing costs and do they even offer rates that are less than 9%
An sba loan will cost about 3% . During the recovery act the fee was waived but that ended.
Some banks will waive the fees. I have my business checking with Capital One and I know I got a phone call from them once offering a business line of credit and they were waiving fees.
SBA meaning Small Business Administration? I thought the OPwas talking about a 7a or express LOC thru the Small Business Admin - since they mentioned they are guaranteed - they charge a 3% fee to keep the program funded. Never heard of a bank waiving it unless they are paying it for the borrower.
Message edited 3/30/2012 1:02:29 PM.
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| Posted 3/30/12 1:01 PM |
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