Lower rate, or lower fees — which actually costs less?
An SBA loan's lower rate can be eaten alive by its guarantee fee, or it can still win easily — it depends on the numbers, not a rule of thumb. Compare both offers side by side.
Illustrative estimate · Not financial advice
Read next
How Business Loan Payments Actually Work
A lender quotes a rate and a term. Here's how that turns into a monthly payment, why the early payments are mostly interest, and what actually moves the total cost of borrowing.
Debt & financingAre Business Loans Taxable Income? How Debt, Interest, and Forgiveness Are Taxed
Loan proceeds are not income — but forgiven debt usually is. Business interest is deductible when the loan funded business purposes. Shareholder loans from S-corps require written notes and market interest to avoid reclassification as distributions.