YOU ASK:

Is there an equivalent of private mortgage insurance (PMI) for business loans?

WE ANSWER:

As a rule, there is no equivalent for private mortgage insurance for business loans. That means there is no counterpart for a mortgage insurance for business loans. Most commercial lending institutions will usually ask the borrower for 20% to 30% down payment, but this is only on a case to case basis.

What may happen is that you can get a commercial lender to lend you funds for just a portion of the loan. The borrower may have to get an SBA loan for the rest of the amount. This usually is the case for loans where there is less than 30% down payment.

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