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Wachovia Small Business Capital has rolled out a new Small Business Administration product, a fixed-rate 7 (a) SBA loan.
It's the first such loan in the industry, and it might force other lenders to follow suit if the offer catches on with borrowers. Most such loans have variable interest rates.
Wachovia's nationwide SBA operation, based in Roseville, has been testing and refining the loan since January. It was to be released Thursday.
"We really wanted to get it out this year, because the prime rate is so low," said Chris Ledesma, vice president of marketing and product management for Wachovia. Small Business Capital.
"No one else is doing that right now. That could be a real hot product if they price it well," said Jim ONeal, district director of the Sacramento SBA office.
"Usually, SBA lenders like the variable rate structure. This sounds like a good product," said James Rivera, associate administrator for financial assistance at the SBA in Washington, D.C. He's in charge of the SBA's loan programs. "Anything that results in more loans to small business, we are in favor of it."
The SBA's most popular loan: The new fixed Wachovia loan...