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I need to renegotiate our current SBA loan which is at a very high interest rate 10.5%. Any suggestions?

Looking to find a new lender or investor to help take over our SBA loan at a lower rate. We are open to different options at this point.

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Answers (4)
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The BAF Group LLC
MD

Jorge, 36%??? If I were you, I would talk to the States Attorney, right away! You may have been a victim of violations under the Equal Lending protections and Civil Rights Acts. I am not an attorney, but I sure as hell would check into it. That is absolutely not right, any way you look at it! And I have NEVER heard of an SBA loan with those terms.

Feb 11, 2011
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I had an SBA Loan through Accion Texas in Dallas in 2006 to build my first business, I was unexperienced and they got me to sign a contract for an $18,000 loan and charged me a $2,000 fee and 36% interest rate and I was never able to get off the loan or lower the interest rate. My business closed in the first year and I had to continue making the payments, they harrased me very much for two months that I was unable to make the payments becasue I lost my job too and they did not offer any type of protection or insurance. My monthly payments was $560 and the total I paid was $32,000. Total ripp-off and taking advantage of a first time hispanic business owner. I wonder how many other people have they done this to.

Feb 11, 2011
Michelle Orr
Wells Fargo SBA Lending
Business Development Officer
Fairfield County, CT

Kim,

I am a commercial loan consultant and former SBA lender. I would be interested in seeing your loan docs, because most SBA loans are adjustable, and the WSJ Prime Rate is currently only 3.25%. The highest spread a lender can add to Prime is 2.75%, so your rate should only be 6% right now. Unless your lender gave you a fixed rate SBA loan? In any event, I would be happy to review your loan docs and assist with arranging a refinance. Please contact me at your convenience.

Best regards,
Michelle Orr
203-345-6118

May 27, 2009
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The BAF Group LLC
MD

Kim, the information you have provided does not offer much, in the way of being able to be specific. It depends upon the kind of business, the type of assets that might be involved, how long you have had it and how well the business is currently doing - among other issues. Many times, your experience could historically provide you with the opportunity to re-finance very easily. By historically, I mean that before October 2008, that was relatively easy. Now, those other issues become much more critically reviewed, before answers are given. But I would absolutely go for it! 10.5% is a mammoth number! First take a look at your current loan to make certain where you stand with respect to pre-payment penalties that may or may not be involved. Then I would go back to the Bank from which you originally got your SBA loan. If you are in good standing there, that Bank is in the best position to feel comfortable with your financial position, and want to retain you as a customer. If that Bank is not interested, try local Banks first, before you go to the big, national ones. The local or regional Banks seem to be a bit more amicable, than the national ones are, at this point in time.

May 26, 2009

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