Commercial Loan Rate Survey – Florida – June 2016

By: John Patterson CFP ®

As we head into the summer months many think the economy is heating up enough that the Federal Reserve Board will increase the Federal Funds Rate when they meet the 14^th and 15^th of June.

Our recent data from lenders in Florida shows no increase in current interest rates yet.

Commercial Real Estate (owner occupied) Interest rates for commercial loans are still fantastic right now.

– Best loan right now is a 10 year fixed at 3.60% which is based on a 20 year amortization. Close behind are two other banks offering a 3.78% and a 3.85% 10 year fixed rate loans also with a 20 year amortization?

– Average pricing from top tier lenders is a 10 year term loan with a 5 years fixed rate anywhere from 4.75% to 5%. Amortization on these loans can go up to 20 years.

Commercial Real Estate (SBA Pricing)

– The best SBA loan is a 10 year fixed loan at 4.99%. There is also a 25 yr fixed rate at 5.5%. Both loan options are based on a 25 year amortization.

– The best pricing on an SBA 7a loan variable rate loan currently remains 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 local on-line marketplace, using technology to dramatically simplify the execution of shopping for business loans. They are the first stop one shops for business loans. This information was gathered from the best banks and lenders in the Florida market.

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