AdvisorSmith Finds the Average Small Business Loan Interest Rate in 2021

NEW YORK - April 29, 2021 - PRLog -- AdvisorSmith, a leading provider of small business and insurance content, released its newest study where they found the average small business loan interest rate for various types of loans in 2021.

For the study, AdvisorSmith used data from the Federal Reserve's Small Business Lending Survey. This survey covers bank lending to small businesses with up to $5 million in sales.

The loans included in the average estimate are bank-issued term loans to small businesses with either fixed or variable interest rates.

AdvisorSmith took the weighted average interest rate for both fixed and variable rate term loans issued by banks to small businesses to determine the average interest rate. They calculated the interest rate for each of the previous years back to 2017.

To find the interest rates from alternative lenders, they collected interest rate information from their published websites.

AdvisorSmith discovered that the average interest rate for small business loans at the beginning of 2021 was 2.7 percent through their research.

The interest rate charged varied widely depending on the type of business, the type of loan, and the type of lender chosen.

Interest rates on bank loans to small businesses commonly ranged between 1.7 percent to 5.4 percent, while alternative lenders generally charge higher rates.

For fixed-rate loans to small businesses, the average interest rate was 2.6 percent at the beginning of 2021, while the average interest rate for variable loans was 4.24 percent.

To view the complete study, please visit https://advisorsmith.com/data/average-small-business-loan-interest-rates/.

About AdvisorSmith

AdvisorSmith is a leading information resource for small business owners. AdvisorSmith empowers small businesses with original research and insights into trends to help them succeed. For more information, visit https://advisorsmith.com or follow us on Twitter @AdvisorSmithInc.