Commercial Loan Rates – South Florida – February 2016

It’s February and love is in the air as most South Florida area Lenders have kept pricing on business loans at their near historic lows with very few reporting any increase in commercial loan pricing. 87% of the reported local lenders have kept their pricing the same as last month while 9% of the Lenders raised their pricing slightly by ¼%.

The “Cupid” who is helping hold rates steady seems to be the Federal Reserve Board who have indicated that any talk about raising rates have been put on ice at least till March. This move has kept the 5 and 10 year Treasury rates, which most lenders use to set pricing, very stable.

Commercial Real Estate (owner occupied)  
Very strong competition among area banks is keeping these interest rates very low. In addition some Banks are running specials where they will help pay part of a borrower’s standard loan fees.
– Best loan right now is a 15 year fixed Term/AM loan being offered at 3.99%. There is a 5 year prepayment penalty but overall this is the best deal we could find in our area.
– Average pricing from top tier lenders is a 10 year term loan with 5 years fixed rates anywhere from 4.75% to 5%. Amortization on these loans can go up to 20 years.

Commercial Real Estate (SBA Pricing)
Pricing on SBA commercial real estate loans seemed to have increased somewhat slightly.

– The best SBA loan is a 25 yr term/AM loan being offered at 5.5% fixed.

– The best pricing on an SBA 7a loan variable rate loan is currently a 25 yr term/AM loan offered at rate of 5%. The average SBA 7a loan is a 25 yr term/AM loan being offered at a variable rate of 6.25 % (WSJ Prime Rate +2.75%).

Machinery & Equipment Loans
Lenders are offering lots of options when it comes to how long you want your M&E loan to last?

– If you can handle a short term loan the strongest is a flat 3 year term/AM with a fixed rate of 2.99%. Average pricing from a good lender is going to be a 5 year term/AM with a fixed rate of 4% – 5%. If you need to go SBA the best pricing is currently a 10 year fixed rate at 5.5%.

Working Capital Loans

– Assuming you are not looking for a 0% introductory rate credit card the best working capital loan terms are a 1 year line of credit at 3.75%. If you don’t want to be in a situation where you need to renew the loan every 12 months, the best loan program is a 5 year term/AM with a fixed rate of 5.5%. If you need to go the SBA route most SBA lenders are going to be at a 6.25% variable rate with a term of 7 to 10 years.

The above pricing was provided by The Best Business Loans in Town which is a free local on-line marketplace, using technology to dramatically simplify the execution of shopping for business loans.
This information was gathered from over 20+ local banks and lenders in the State of Florida.

To see for free what terms you or your Clients could qualify for, please go to our website www.tbblit.com. Finding out is very fast and easy and normally takes 10 minutes or less.