Question: do sba loans have prepayment penalties?
Answer: For SBA 7(a) loans, prepayment fees only apply when a borrower “voluntarily prepays 25% or more” of a loan's outstanding balance on a loan 15 years or longer. ... So, for prepayment-eligible SBA 7(a) loans, prepayment penalties include: Year 1: 5% of the total prepayment amount. Year 2: 3% of the total prepayment amount.