SBA 7(a) loan rates
Updated October 28, 2026 · prime 7.00% since September 17, 2026
An SBA 7(a) rate is a base rate plus a spread. The SBA caps the spread by loan size; the lender decides how far below the cap to go.
10.00%
Highest variable rate a lender can charge on a $500,000 SBA 7(a) loan.
How the maximum rate is calculated
- Start with the base rate. Almost every lender uses the Wall Street Journal prime rate, now 7.00%. The SBA's optional peg rate is 5.00%.
- Find the maximum spread for your loan amount in the tables below.
- Add them. A $500,000 variable loan can't go above 7.00% + 3.0 = 10.00%.
Variable-rate caps
| Loan amount | Maximum spread | Maximum variable rate today |
|---|---|---|
| $50,000 or less | Prime + 6.5 | 13.50% |
| $50,001 to $250,000 | Prime + 6.0 | 13.00% |
| $250,001 to $350,000 | Prime + 4.5 | 11.50% |
| Over $350,000 | Prime + 3.0 | 10.00% |
Fixed-rate caps
| Loan amount | Maximum spread | Maximum fixed rate today |
|---|---|---|
| $25,000 or less | Prime + 8.0 | 15.00% |
| $25,001 to $50,000 | Prime + 7.0 | 14.00% |
| $50,001 to $250,000 | Prime + 6.0 | 13.00% |
| Over $250,000 | Prime + 5.0 | 12.00% |
What a quarter-point change costs
On a $500,000, 10-year loan, the monthly payment at 10.00% is $6,608. At 9.75% it's $6,539, a difference of about $8,283 over the life of the loan. Run your own numbers.
Questions
What is the SBA peg rate?
An optional base rate the SBA publishes each quarter as an alternative to prime. It is 5.00% for the quarter that began October 1, 2026. Few lenders use it, but you can ask.
Is a fixed or variable SBA loan better?
Most 7(a) loans are variable. A variable loan starts lower and falls if the Fed cuts rates, but your payment can rise. Fixed caps are higher, so you pay for certainty. If you expect to refinance or pay off early, variable usually costs less.
Are there fees on top of the rate?
Yes. SBA charges an upfront guaranty fee on most 7(a) loans, which can be financed into the loan, and lenders may charge packaging or closing costs. Compare the APR, not just the note rate.
What rates do SBA Express loans have?
SBA Express loans use the same maximum spreads as standard 7(a) loans by loan size, up to $500,000. Today that means caps of 10.00% to 13.50% variable.
Sources: SBA 7(a) terms, conditions and maximum variable rates; Federal Reserve H.15 selected interest rates (bank prime loan rate); October 2026 SBA 504 debenture pricing, as published by CDCs; SBA FOIA 7(a) and 504 loan-level data.