What kind of interest rates do banks apply to small business loans?
Say the loan is $100,000 or so
There are different factors considered for interest rates but typically for a new business, you could expect rates typical of SBA loan products which is prime (currently 8.25%) + 2.25% for a term less than 7 years or prime + 2.75% for a term 7 years or greater for loans above $50k. If your credit is excellent and you have great experience in the business, and/or you are a long-time customer of the bank and know a banker, than you definitely have room to negotiate. This is particularly true if you have been in business for a while.
Check out the business/commercial section of your bank's website for more information. The SBA has great information too.
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