SBA loan rates: current maximums and how they work

What are current SBA 7(a) loan rates?

The SBA doesn’t set your rate. Your lender does, but the rate can’t exceed an SBA maximum: a base rate, usually the prime rate, plus a margin that shrinks as the loan gets bigger. With the prime rate at 7.00% (Bank prime loan rate as of October 5, 2026), the maximum variable rates are:

These are ceilings, not quotes. Lenders can and often do price below them, and the rate you’re offered depends on your loan and your business.

Definition

Prime rate: the base rate banks use to price many business loans. It generally moves when the Federal Reserve changes its federal funds rate target, and most variable-rate SBA loans are tied to it.

Are SBA loan rates fixed or variable?

Both are allowed, and the choice affects your cost over time:

• Variable rates are the most common on 7(a) loans. Your rate is the base rate plus a fixed margin, so it rises and falls with prime. Your loan note sets which base rate is used and how often the rate adjusts.
• Fixed rates stay the same for the life of the loan. The SBA allows them under separate, higher caps, shown below the table above. Lenders decide whether to offer fixed-rate 7(a) loans, and not all do.

A fixed rate makes payments predictable, which matters most on long real estate loans. A variable rate can cost less if prime falls, and more if it rises.

What is the SBA peg rate?

Definition

SBA optional peg rate: a base rate the SBA publishes each quarter, based on what the federal government pays to borrow for terms similar to a typical SBA loan. Lenders may use it instead of prime to price variable-rate 7(a) loans.

The current peg rate is 5.00% (SBA optional peg rate for October through December 2026). A lower base rate doesn’t automatically mean a cheaper loan, because the lender’s margin on top of it may be larger. Compare the full rate on every offer, not just the base. Whatever base rate a lender uses, your rate can’t exceed the SBA maximum.

Do SBA Express and 7(a) Small Loans have different rates?

They use the same caps as every 7(a) loan, but their size puts them in different tiers:

• SBA Express loans go up to $500,000 and are capped at Prime + 3% to 6.5%, depending on loan size. Lenders make the credit decision themselves, and pricing varies from lender to lender.
• 7(a) Small Loans go up to $350,000, so they fall in the higher-margin tiers: Prime + 4.5% to 6.5%.
• SBA microloans work differently. Nonprofit lenders set the rate, typically 8%–13%.

Smaller loans carry higher caps, so on a small request it’s especially worth comparing what different lenders charge.

What are SBA 504 loan rates?

A 504 loan has two lenders and two rates:

1. The CDC portion has a fixed rate for its full term (Debenture rate tied to 5- and 10-year Treasury yields). The rate is locked when the SBA sells the debenture to investors, which usually happens after your project is complete.
2. The bank portion is priced by the bank and can be fixed or variable.

Because the CDC rate is set at each debenture sale, we don’t list a single current 504 rate here. Ask the CDC for its most recent rate and an estimate for your project. CDCs often quote an effective rate that includes the ongoing 504 fees, so make sure you know which number you’re looking at.

What determines the rate a lender offers you?

Within the SBA’s caps, each lender prices loans its own way. The main factors are:

• Loan size. The SBA allows higher margins on smaller loans, and lenders may price them closer to the cap.
• Term and use of funds. A long real estate loan and a short working capital loan carry different risks.
• Credit history. Your personal and business credit tell the lender how you’ve handled debt.
• Collateral. Real estate or equipment that secures the loan lowers the lender’s risk.
• Cash flow. The more comfortably your business covers its payments, the stronger your position.
• Fixed or variable. Fixed rates are often priced higher to cover the lender’s interest rate risk.
• The lender itself. Lenders differ in their cost of funds and in how much they want loans like yours.

A strong application may earn a rate below the cap, so it pays to get offers from more than one lender.

How do fees affect the cost of an SBA loan?

The interest rate isn’t the whole cost. Most 7(a) loans also carry an upfront SBA guaranty fee based on loan size, and 504 loans carry upfront and annual SBA fees plus CDC fees. Closing costs such as appraisals and title work come on top.

Because most borrowers finance these fees into the loan, they also add interest over time. When you compare offers, look at:

• The rate, and whether it’s fixed or variable
• Every fee, in writing
• The term, which drives your monthly payment

Our guide to SBA loan fees covers each fee in detail, and the SBA loan calculator shows your estimated payment at any rate and term.

How often do SBA loan rates change?

The SBA’s maximum rates are tied to the prime rate, so they move whenever prime moves. What that means for you depends on your loan:

• Variable-rate loans adjust on the schedule in your loan note, so your payment can change over the life of the loan.
• Fixed-rate 7(a) loans keep the rate you lock in.
• 504 loans fix the CDC rate at the debenture sale, so the final rate depends on Treasury yields at that time.
• The peg rate is reset by the SBA each quarter.

The maximums in the table above are based on the prime rate as of the date noted with it. If you’re comparing an older quote, check it against today’s prime rate.

How do you find the right lender for your SBA loan?

Within the SBA’s caps, rates and fees vary from lender to lender. Lenders that regularly fund loans like yours already understand the risks in your type of business, which can make for a smoother conversation about pricing.

SBA Loan Connect ranks lenders using the SBA’s public 7(a) and 504 loan records, so you can see which lenders actually fund businesses like yours. Partner lenders are labeled, and getting matched is free with no credit check. See how we rank lenders or get matched with lenders.