Now for the good stuff: How much is an SBA loan going to cost you? The news here is positive—it's tough to beat the low interest rates and long repayment terms for these loans. SBA loans tend to be the least expensive financing available to small business owners.

SBA loans come with different rates depending on the lender you work with; however, the SBA establishes the maximum amount that can be charged for these loans. SBA loans from banks in the SmartBiz network have variable interest rates and depend on the loan amount:

The current Prime Rate, is determined by market conditions and set by the Federal Reserve Board. On top of this base rate, lenders can charge additional interest rates, subject to the caps set by the SBA.

There are also several fees associated with SBA loans: some are charged directly by the SBA, while others are charged by lenders or agents to cover the costs of making and processing the loans. Like the interest rate, the SBA regulates what is the maximum that can be charged.

When you choose to work with M2C Capital to apply for an SBA loan, you appoint our partner lenders as your referral and packaging agent. This means we can help you assemble and complete all the appropriate documents to apply for these loans and then refer your application to one of our preferred SBA lending banks who is most likely to approve your particular business.

While the SBA does not require the use of an Agent for Packaging Services or to refer a loan application in order to apply for an SBA loan. Clients choose to hire our banking partners to make the process easier and faster than a traditional bank.

For our services, we charge a one-time referral fee of no more than 2% of the loan amount and a one-time packaging fee of no more than 2% of the loan amount for working capital and debt refinance loans. Bank closing costs for these types of SBA loans typically add about another $450 and include standard bank fees though additional 3rd-party report charges may apply. Working Capital and Debt Refinance loans through SmartBiz have no prepayment penalties. You can pay off your loan any time with no additional cost.

Our SBA Loan partner charges no more than a one-time 0.5% referral fee of the loan amount and no more than a one-time 0.5% packaging fee of the loan amount. Bank closing costs also typically add about $5,000 and include standard bank fees, appraisal, and title fees. Additional 3rd-party report charges may apply. After the third year, there are no prepayment penalties for the remaining life of the loan. There is a 5% prepayment penalty if the loan is paid off in first year, 3% in second year, and 1% if paid off in third year.

Bank Closing Costs

Working capital loans – Costs typically add about another $450 and include standard bank fees, though additional third party report charges may apply.

Commercial Real Estate loans – Costs typically add about another $5,000 and include standard bank fees, appraisal, and title fees though additional third party report charges may apply.

Fees are an estimate and the actual amounts may vary. Fees are usually deducted from loan proceeds so you get the net amount when your loan is funded.

We aim to be totally transparent with our customers about the cost of their loans. If you have any further questions, don’t hesitate to call us