Commercial Loan Rate Survey – Florida – March 2016

Commercial Loan Rate Survey –  Florida – March 2016 

By: John Patterson CFP ® March 23, 2016

Spring has sprung but interest are holding steady as we head into the end of March.

Although the Federal Reserve Board did not change the Federal Funds Rate when they met on March 16th, outside market pressures have been pushing the yield on the 5 and 10 year Treasuries higher over the past 30 days.  These Treasury yields are used by many banks as an index to determine their commercial loan rates.

For us the good news is that competition among Florida Banks is keeping most commercial loan interest rates unchanged from February.
Commercial Real Estate (owner occupied)  
Interest rates for commercial loans are fantastic right now. 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. New to the mix is a 10 year fixed rate, 20 year amortized loan at 3.85%. This lender will waive the appraisal and origination fee.
– 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 have remained unchanged.

– 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 3%. 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 the best banks and lenders in the Florida market.

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.