Title: A Step-by-Step Guide to Making SBA Payments  | The Blueprint
Headings: Should You Pay Off an SBA Loan Early?
Should You Pay Off an SBA Loan Early?
Why would you prepay an SBA loan?
3 considerations before making an SBA prepayment
1. What is your interest rate savings?
2. What will your cash position look like?
3. What are your new covenants?
How to make an SBA prepayment
1. Engage your new lender
2. Get a payoff statement from your existing lender
3. Make the payment
To pay or not to pay
The Ultimate Guide to Building Virtual Teams

Content: Most conventional loans have a balloon payment. Lenders entice you by calculating the loan payment as if it were a 25-year loan term, but after 10 years, you have to pay the remaining balance as one big lump sum. Avoid those types of loans. 2. What will your cash position look like? If you’re one of those business owners who wants to avoid leverage and you want to pay your loan off as soon as possible, make sure you consider your cash position and opportunity cost. Opportunity cost is easy. If you can put cash into paying off this loan, which has a 6% interest rate, or into equipment, which will have an ROI of 15% per year, you should obviously put it into the equipment. Cash is a little different. Only you know what the right amount of cash is for your business.