For borrowers and lenders, the SBA matters because it administers flagship financing programs like 7(a) and 504, publishes operating procedures (SOPs), and enforces regulations that determine eligibility, loan structure, and lender responsibilities.
Where SBARates.com fits: SBARates.com is a data-driven SBA lending intelligence platform designed to help entrepreneurs research SBA lenders and compare SBA rate context (where available) by industry and lender activity.
Brief history: How Congress created the SBA
The SBA was established in 1953 as an independent federal agency. SBA’s own history content notes that on July 30, 1953, President Dwight D. Eisenhower signed the Small Business Act, creating the SBA and establishing a mission to “aid, counsel, assist and protect” small businesses.
SBA’s “Organization” page also emphasizes the agency’s role in advocating for small businesses, including reviewing legislation and assessing regulatory impacts on small firms.
Guarantees: How the SBA supports loans without being the lender
A key concept for borrowers: for most SBA business loan programs (especially 7(a)), the SBA typically does not lend the money. Instead, the SBA provides a guaranty on a portion of a loan that is made and funded by a lender (bank/credit union/non-bank lender), which can make lenders more willing to approve financing.
More information about SBA Guarantees
SBA programs most tied to SBA loan rates
SBA 7(a) Loan (primary general-purpose program)
SBA describes 7(a) as its primary business loan program for providing financial assistance to small businesses. SBA 7(a) guide:
SBA 504 Loan (fixed assets: real estate & equipment)
SBA describes 504 as providing long-term, fixed-rate financing for major fixed assets through Certified Development Companies (CDCs), which are certified and regulated by SBA. SBA 504 guide
SBA Microloan Program (small-dollar capital via intermediaries)
SBA states the Microloan program provides loans up to $50,000, administered through nonprofit intermediary lenders.
Administers: How SBA rules shape pricing, eligibility, and lender processes
The SBA “administers” its lending programs primarily through:
- Regulations (CFR rules)
- SOPs (procedural handbooks for lenders and CDCs)
- Program pages and official guidance that define how loans must be structured
For example, SBA states that 7(a) interest rates are negotiated between the borrower and the lender, but are subject to SBA maximums tied to Prime (or an optional peg rate).
Regulates: The most important SBA regulations and policies borrowers should know
Below are the “big levers” that impact SBA lending outcomes (approval, structure, and rates):
1) The Small Business Act (foundational authority)
The Small Business Act is the statutory foundation that created the SBA and set the national policy to support small business participation and development.
2) 13 CFR Part 120 (Business Loans)
SBA’s core business loan rules are implemented through 13 CFR Part 120, which lays out the regulatory framework for SBA loan programs (including 7(a)).
3) SOP 50 10 (Loan origination policies for 7(a) and 504)
SBA publishes SOP 50 10 as the operating playbook for lender and CDC loan programs, describing origination policies and procedures for 7(a) and 504.
4) 13 CFR Part 121 (Size standards: what counts as a “small business”)
SBA assigns size standards by industry (often based on employees or receipts), and SBA points businesses to 13 CFR Part 121 as the governing regulation for size eligibility in contracting and related programs.
5) FAR Part 19 (Federal contracting programs that intersect with SBA policy)
SBA’s ecosystem also connects to federal contracting rules. FAR Part 19 sets the framework for small business programs in federal acquisitions.
Why SBA rules matter for SBA loan rates (and how SBARates.com helps)
Because SBA loan pricing is typically negotiated with lenders (within SBA maximums for many 7(a) structures), lender choice often determines:
- How aggressively a lender prices within the allowable range
- What fees are charged and how APR compares
- How quickly the loan closes and how smoothly it’s serviced
SBARates.com helps borrowers research active SBA lenders and compare lender context (including industry and lender activity signals), which is especially useful when you’re shopping for the best structure and rate outcome under SBA rules.