Small Business Development Loans (General)

I was talking to one of my college professors the other day about starting businesses, and he said something that surprised me. He said that a person can get a small business development loan for up to $900,000 at an interest rate of 3-4%. I decided I better look into it.

I found out that he is right. Interest rates are not that low at the moment, but may have been that low at one point.

• The cheapest rates in Colorado are about 4.37%, for a 10 year loan.
• The payment for a $500,000 loan would be about $5,200 per month, for 10 years.
• A person can borrow up to $1 million, with a $25,000 minimum loan.
• There are 20 year loan options with a higher interest rate (5.25% currently), but lower monthly payments ($3,400 per month).

Do you think you could do it?

If you had 500 grand for a building, equipment, and inventory, could you generate $5,200 per month in profit with your business idea?