If you’re comparing financing options, SBA loan rates can feel confusing because they’re not “set by SBA” the way some government programs are. Instead, SBA rules cap what lenders can charge for many SBA products (especially 7(a) loans), while the actual rate you get depends on your deal’s risk profile, structure, and lender appetite.
Where SBARates.com fits: SBARates.com is a data-driven directory that helps borrowers research SBA lenders and see lending insights (including rate context like “rate over Prime” in certain industry views), so you can compare options faster.
Determine how SBA Loan Rates are built: base rate + spread
For many SBA 7(a) loans, the common structure is:
- Base rate = Prime Rate or SBA Optional Peg Rate
- Spread = lender markup (risk-based), but capped by SBA rules
Compute the base rate choices
SOP 50 10 8 describes two acceptable base rates for variable-rate 7(a) loans:
- Prime Rate
- SBA Optional Peg Rate (a weighted average of rates the federal government pays for comparable maturities, published quarterly in the Federal Register)
Determine SBA maximums for SBA Loan Rates (SOP 50 10 8 quick reference)
SOP 50 10 8 repeats the variable-rate maximum spreads across major 7(a) delivery methods (Standard 7(a), 7(a) Small, SBA Express, CAPLines, Export Express, International Trade).
Standard SBA 7(a) Loan: maximum variable spreads
Maximum variable rates (Prime or Optional Peg Rate + spread):
- ≤ $50,000: + 6.5%
- $50,001 – $250,000: + 6.0%
- $250,001 – $350,000: + 4.5%
- ≥ $350,001: + 3.0%
7(a) Small & SBA Express: maximum variable spreads
SOP 50 10 8 includes the same tiered caps and calls out SBA Express up to $500,000 with a +3.0% cap for the $350,001–$500,000 band.
CAPLines: maximum variable spreads
CAPLines reference the same tiered caps, including ≥ $350,001: +3.0%.
Export Express & International Trade: maximum variable spreads
Export Express and International Trade show the same tiered spread caps.
EWCP (Export Working Capital Program): how SBA Loan Rates work
EWCP is a key exception: SOP 50 10 8 states SBA does not prescribe EWCP interest rates, but monitors them for reasonableness.
Fixed rates: where the maximum comes from
SOP 50 10 8 explains that SBA publishes the maximum allowable fixed rate (typically tied to Prime plus an allowable spread) and points lenders to SBA’s Fiscal Transfer Agent (FTA) Wiki for the current fixed-rate caps.
Influence what you actually pay: underwriting, structure, and risk
Even with SBA caps, real offers vary. Lenders price SBA loan rates based on:
- Borrower strength (cash flow coverage, credit profile, liquidity)
- Collateral and structure (owner-occupied real estate, equipment, acquisition)
- Loan term and amortization (longer terms can increase risk and price)
- Industry volatility and concentration risk
- Guarantee / delivery method (SBA Express vs Standard 7(a), Export programs, etc.)
Practical takeaway: SBA caps the ceiling; your profile determines where you land under it.
Determine the difference between Interest Rate vs APR (loan pricing reality)
When comparing SBA loan rates, don’t stop at the note rate. Ask for:
- APR (captures many finance charges and fees in a single annualized number)
- Itemized fees and how/when they’re paid
For 7(a), SBA describes program fees, including:
- Upfront guaranty fee (can often be passed to the borrower)
- Annual service fee paid by the lender (SBA notes it cannot be charged to the borrower)
These costs can materially change your all-in borrowing cost, especially on shorter-term loans.
Determine how SBA 504 Loan rates are priced (and what’s “capped”)
A 504 project usually combines:
- A third-party lender portion (bank loan), and
- A CDC/SBA debenture portion (long-term fixed-rate financing)
SBA’s 504 program is described as long-term, fixed-rate financing for major fixed assets via CDCs.
For the third-party portion, SBA regulations require rates to be reasonable and note SBA establishes and publishes a maximum interest rate for third-party loans from commercial institutions (via Federal Register).
Plan a smarter comparison using SBARates.com
If your goal is to find competitive SBA loan rates (not just learn the caps), you need lender context:
- Which lenders are most active in your industry
- How lenders price over Prime in real approvals (where data is available)
- Which lenders focus on your loan purpose (acquisition vs CRE vs working capital)
SBARates.com positions itself as a directory and intelligence platform to help borrowers research SBA lenders and rate context.
Workflow idea:
- Use SBA’s caps to sanity-check offers (“is this even allowed?”)
- Use SBARates.com to shortlist lenders that actually do your kind of deal.
- Compare APR + fee structure, not just the headline rate.
FAQ: SBA Loan Rates (collapsible)
Note: “Current” rates (Prime, Peg, fixed-rate caps) move over time. The questions below focus on how SBA loan rates work and what the rules are.
What are SBA loan rates based on?
Most SBA 7(a) loan rates are negotiated between borrower and lender but are subject to SBA maximums that are pegged to a base rate (Prime or the SBA Optional Peg Rate) plus a capped spread.
What is the maximum interest rate for an SBA 7(a) loan?
For variable-rate 7(a) loans, SBA publishes tiered maximum spreads over the base rate: ≤$50k: +6.5%; $50,001–$250k: +6.0%; $250,001–$350k: +4.5%; ≥$350,001: +3.0%.
Are SBA 7(a) loan rates fixed or variable?
They can be either. SBA caps apply in both cases: variable loans use base rate + spread caps, while maximum allowable fixed rates are published periodically and referenced via SBA’s FTA Wiki.
What is the SBA Optional Peg Rate?
SOP 50 10 8 describes the Optional Peg Rate as a weighted average of rates the federal government pays for loans with maturities similar to average 7(a) loans, calculated and published quarterly in the Federal Register.
Do SBA Express loans have different maximum rates?
SOP 50 10 8 shows SBA Express follows the same tiered structure and includes a cap of base rate +3.0% for the $350,001–$500,000 band.
Does SBA set the interest rate for Export Working Capital Program (EWCP) loans?
EWCP is treated differently: SOP 50 10 8 says SBA does not prescribe EWCP interest rates but monitors them for reasonableness.
What fees affect the APR on SBA 7(a) loans?
SBA describes lender-paid program fees like the upfront guaranty fee (often passed to the borrower) and the annual service fee (which SBA notes cannot be charged to the borrower). Other lender or third-party closing costs can also affect APR.
How are SBA 504 loan rates determined?
SBA 504 financing is typically long-term and fixed-rate for the CDC/SBA debenture portion, and the third-party lender portion must have a reasonable interest rate with SBA establishing and publishing a maximum for third-party loans.
How can I compare SBA loan rates across lenders?
Use SBA’s caps to confirm the offer is within program rules, then compare multiple lender proposals on APR, fees, structure, and closing speed. SBARates.com can help you research SBA lenders and lending insights to build a shortlist.