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SBA loan interest rates: 2026 maximums explained

Current SBA 7(a) maximum interest rates with Prime at 7.00%, how fixed and variable rates are capped, and typical rates for 504, Microloan and disaster loans.

Published · 7 min read · By the AceTheSBA team

Key points

  • SBA does not set your rate. The lender negotiates it with you, but SBA caps the maximum.
  • Variable 7(a) rates are capped at Prime plus 3% to 6.5% depending on loan size. With Prime at 7.00%, the caps are 13.50%, 13.00%, 11.50% and 10.00%.
  • Fixed 7(a) rates are capped at a maximum SBA publishes each month, based on Prime on the first business day of the month.
  • 504 loans carry a fixed rate on the CDC portion tied to 10-year Treasury rates; Microloans generally run 8% to 13%; disaster loans are capped at 4% for businesses without credit elsewhere.

SBA does not publish one “SBA rate”. Your lender sets the rate, and SBA sets the maximum the lender is allowed to charge. Knowing the maximum tells you whether an offer is fair and gives you room to negotiate.

Maximum variable rates for 7(a) and SBA Express loans

Most 7(a) loans have a variable rate: a base rate, usually the Wall Street Journal Prime rate, plus a spread. SBA caps the spread by loan size:

Loan amount Maximum rate With Prime at 7.00%
$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%

Prime is the rate in effect on the first business day of the month. The Prime rate has been 7.00% since the Federal Reserve’s September 2026 increase. When Prime moves, the maximums move with it.

A few rules protect you on a variable-rate loan:

  • The spread in your note cannot change during the loan without your written agreement.
  • The same spread is used at every adjustment.
  • Default interest rates are not permitted.

Other base rates

Lenders can also use SBA’s Optional Peg Rate, which SBA publishes quarterly, or an alternative base rate: SOFR or the 5-year or 10-year Treasury rate. With an alternative base rate, the total rate is still capped at the Prime-based maximums above.

Maximum fixed rates

A 7(a) loan can carry a fixed rate instead. The maximum fixed rate is Prime on the first business day of the month plus a spread SBA publishes in the Federal Register and lists through its fiscal transfer agent. A lender can use the fixed maximum only if the rate stays fixed for the whole term with no reset. Fixed caps are higher than variable caps, because the lender carries the risk of rates rising.

Rates on other SBA programs

Program How the rate works
504 The CDC portion is fixed, set at an increment above the 10-year Treasury rate when the debenture is sold. The bank portion is negotiated with the bank.
Microloan Set by the nonprofit intermediary, generally 8% to 13%.
Disaster loans Fixed. No more than 4% if the business cannot get credit elsewhere; physical damage loans can be up to 8% if it can.
SBA Express and export loans Negotiated, within the same 7(a) maximums.

What the rate costs you

On a $500,000 7(a) loan over 10 years at the 10.00% maximum, the payment is about $6,608 a month. At 9.00%, the same loan costs about $6,334 a month, roughly $33,000 less over the life of the loan. Use the SBA loan calculator to test your own numbers.

The rate is only part of the cost. SBA’s guaranty fee, the lender’s packaging fee and closing costs add to it, and long real estate loans can have a prepayment fee in the first three years. Compare offers on the total cost, not the rate alone.

How to get a better rate

  1. Ask more than one lender. Rates vary within the caps, and lenders compete for well-prepared borrowers.
  2. Strengthen the file. Stronger cash flow coverage, more equity and good collateral reduce the lender’s risk.
  3. Choose the right program. For owner-occupied real estate, a 504 loan’s fixed rate on the CDC portion is often lower than a 7(a) rate.
  4. Ask about fixed versus variable. A variable rate starts lower; a fixed rate protects you if Prime rises.
  5. Read the note. Check the base rate, the spread, how often it adjusts and any floor.

This article reflects SBA SOP 50 10 8.1, effective October 1, 2026, and the Wall Street Journal Prime rate of 7.00% (November 2026).

Frequently asked questions

What is the current SBA loan interest rate?
There is no single rate. Each lender sets its own rate up to SBA's maximum. With the Wall Street Journal Prime rate at 7.00%, the maximum variable 7(a) rate is 13.50% for loans of $50,000 or less, 13.00% from $50,001 to $250,000, 11.50% from $250,001 to $350,000 and 10.00% above $350,000.
Are SBA loan rates fixed or variable?
7(a) loans can be either. A variable rate is a base rate, usually Prime, plus a spread that cannot change during the loan without your written agreement. A fixed rate must stay in effect for the whole term. The CDC portion of a 504 loan is always fixed.
Why are smaller SBA loans allowed higher rates?
The cost of making and servicing a small loan is similar to a large one, so SBA allows a larger spread on smaller loans: up to Prime plus 6.5% for $50,000 or less, falling to Prime plus 3% above $350,000.
Can an SBA lender charge a penalty interest rate if I miss a payment?
No. SOP 50 10 8.1 does not permit default interest rates. A 7(a) lender may charge a late fee of up to 5% of the payment once it is more than 10 days late.
How often does a variable SBA rate change?
The note sets the adjustment frequency, which the lender chooses. At each adjustment the same spread is added to the base rate in effect at that time.

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