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LOUISVILLE, KY, January 04, 2018 /24-7PressRelease/ -- SBALenders.com released the results of its annual study of best SBA lenders. What the study shows is that bigger is not always better when it comes most affordable SBA loan options.
"This study demonstrates the best place for a loan may not be the household name banks, but rather small and midsize banks," stated Max Himaya, Senior Analyst at SBALenders.com. Himaya continued "also, many of the very attractive rates are found at banks whose headquarters are in very small towns like Indiana's Jasper and Greensburg."
The top bank in 2017 was MainSource Bank (Greensburg, IN). Not only was MainSource the only lender in the country to have rates below 5%, MainSource led both categories based on duration (loans under 7 years and loans 7 years or longer). A borrower with a $1,000,000 loan with MainSource Bank would save a whopping $249,630 in interest over a ten-year term compared with the highest cost bank on our list. So the message is clear - shop around and save.
The most competitive banks for 2017 for SBA loans over $50,000 with terms of 7 years or longer:
Rank Bank Avg. Interest
1 MainSource Bank (Greensburg, IN) 4.55%
2 MUFG Union Bank (San Francisco, CA) 5.14%
3 Shinhan Bank America (New York, NY) 5.14%
4 German American (Jasper, IN) 5.16%
5 BancorpSouth Bank (Tupelo, MS) 5.25%
A complete list of the top 25 SBA banks for 2017 provides other data including average loan size and loan volumes.
Methodology of study
SBALenders.com looks at thousands of loan transactions over the course of the year and tabulates lowest cost banks based on initial interest rates charged by the roughly 1,000 active SBA banks.
Banks with fewer than 20 year-to-date loans were excluding from the final list. Other fees, expenses, and charges outside of the interest rate were not included in the tabulations.
SBALenders.com is a resource for entrepreneurs to find the best match for commercial loans and SBA loans. SBALenders.com tracks all loans processed through the SBA 7(a) loan program and provides detailed reports on loan trends so borrowers can quickly find a bank that is a good fit for their financing needs. For more information, visit www.sbalenders.com.
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