Rates
Business loan rates, November 2026
Current SBA rate ceilings, the prime rate they are built on, and the ranges the rest of the market is quoting. Sourced, dated, and updated when the underlying numbers move.
SBA 7(a) maximum rates today
The SBA caps what a lender may charge on a variable-rate 7(a). The spread narrows as the loan gets larger, which is why small SBA loans are proportionally more expensive.
| Loan amount | Maximum spread | Maximum rate today |
|---|---|---|
| $50,000 and under | Prime + 6.50% | 13.50% |
| $50,001 to $250,000 | Prime + 6.00% | 13.00% |
| $250,001 to $350,000 | Prime + 4.50% | 11.50% |
| Over $350,000 | Prime + 3.00% | 10.00% |
Since March 2026 lenders may also use alternative base rates — SOFR, the 5-year Treasury, or the 10-year Treasury — instead of prime. The maximum spread over the chosen base is the same. In practice most 7(a) loans are still priced on prime, and loans intended for the secondary market generally are.
SBA 504 rates
The CDC portion of a 504 prices off a monthly debenture sale and then fixes for the entire term. There is no reset and no balloon.
| CDC term | Effective rate | Manufacturers, food supply chain, rural |
|---|---|---|
| 10 years | 6.58% | 6.29% |
| 20 years | 6.58% | 6.33% |
| 25 years | 6.57% | 6.34% |
The right-hand column is the FY2027 fee waiver showing up in the rate. Manufacturers, qualifying food supply chain businesses and businesses in rural areas have both the upfront guaranty fee and the annual service fee waived, and because the annual fee is part of the all-in rate, their 504 simply prices lower.
SBA 7(a) guaranty fees, FY2027
| Loan amount | Upfront guaranty fee |
|---|---|
| $150,000 or less | 2.00% of the guaranteed portion |
| $150,001 to $700,000 | 3.00% of the guaranteed portion |
| $700,001 to $5,000,000 | 3.50% of the guaranteed portion up to $1,000,000, plus 3.75% of the guaranteed portion above $1,000,000 |
Note the top band, because it is widely misreported: above $1,000,000 of guaranteed portion the rate is 3.75%, not 3.5% plus a small adder.
Fee relief in force this year
| Who | Which loans | Upfront fee |
|---|---|---|
| Manufacturers (NAICS 31-33), qualifying food supply chain businesses, and businesses located in a rural area | Loans of $700,000 or less | 0% |
| Any 7(a) loan with a maturity of 12 months or less | Any size | 0.25% of the guaranteed portion |
| SBA Express loans to businesses owned and controlled by a veteran or a veteran's spouse | Any size | $0 |
The first row is the one worth chasing, and it is broader than most lenders will volunteer. For fiscal year 2027 the zero upfront fee is not limited to manufacturers: qualifying food supply chain businesses and businesses located in a rural area also pay nothing on loans of $700,000 or less. Rural status is determined from the project address. If any of those three could describe you, raise it directly.
Separately, the lender pays SBA an annual service fee of 0.55% of the outstanding guaranteed balance. That one may not be passed on to you, so it should never appear in your costs.
What the rest of the market is quoting
These are ranges commonly advertised, not offers, not averages, and not a promise of what you will be quoted. They exist so you can tell whether an offer in front of you is normal.
| Product | Typical range | Notes |
|---|---|---|
| SBA 7(a) loan | 10.0% - 14.0% APR | variable, tied to prime |
| SBA 504 loan | 6.0% - 7.5% effective, fixed | CDC portion; bank portion priced separately |
| SBA Express loan | 11.0% - 15.0% APR | variable |
| SBA microloan | 8.0% - 13.0% APR | fixed, set by the intermediary lender |
| Business term loan | 9.0% - 45.0% APR | bank at the low end, online lenders at the high end |
| Business line of credit | 9.0% - 60.0% APR | bank lines low, online revolving lines high |
| Equipment financing | 7.0% - 30.0% APR | driven by the asset and your credit |
| Invoice factoring | 1% - 5% per 30 days | roughly 12% - 60%+ annualized |
| Merchant cash advance | 1.15 - 1.55 factor rate | commonly 40% - 350%+ annualized |
| Working capital loan | 9.0% - 50.0% APR | very wide; depends entirely on the lender type |
| Commercial real estate loan | 6.5% - 9.5% APR | bank and SBA financing for owner-occupied property |
| Business acquisition loan | 10.0% - 14.0% APR | usually SBA 7(a) |
| Startup business loan | 8.0% - 30.0% APR | microloans low, unsecured personal-credit products high |
| Revenue-based financing | 1.10 - 1.40 factor rate | roughly 20% - 120% annualized |
| Home equity for business | 7.5% - 12.0% APR | variable, tied to prime; secured by your home |
| Business credit cards | 18.0% - 29.0% APR | on carried balances; 0% intro offers are common |
| Inventory and PO financing | 1% - 6% per 30 days | roughly 12% - 70% annualized, driven by how fast stock turns |
| Receivables financing | 8% - 30% APR | cheaper than factoring, and you keep collecting |
How to read any rate quote
- Fixed or variable? If variable, tied to what, and is there a cap?
- Does the quoted rate include fees? An origination fee deducted from proceeds can add several points of effective APR.
- What is the payment frequency? Daily debits cost more than the same nominal rate paid monthly.
- Is it a rate or a factor? A factor rate contains no time information. Convert it with our factor rate converter before comparing anything.
Sources
- SBA, 7(a) terms, conditions and eligibility
- SBA, 504 loan program
- Wall Street Journal prime rate
- SBA, microloan program
- SBA Information Notice 5000-881797, 7(a) fees for FY2027
- SBA Information Notice 5000-881796, 504 fees for FY2027
- Federal Reserve H.15, selected interest rates
Rate figures on this page are as of November 2026, which is the date they were last verified against the sources above. We update them when the underlying rate or program rule changes, not on a content calendar.
Questions people actually ask
What is the current SBA loan interest rate?
For a variable-rate 7(a), the maximum is the base rate plus a spread of 3.00% to 6.50% depending on loan size. With prime at 7.00%, that puts the ceilings between 10.00% and 13.50%. Most borrowers on larger loans pay below the cap.
Are SBA rates fixed or variable?
7(a) loans are most commonly variable, resetting with the base rate — usually quarterly or monthly. Fixed-rate 7(a) loans are permitted under a separate maximum. The CDC portion of a 504 is always fixed for the full term, which is the program's defining feature.
Why is my quoted rate higher than the ranges here?
Ranges reflect what is commonly advertised, which skews toward the strongest borrowers. A younger business, a lower credit score, a restricted industry, or a smaller loan will all price above the middle of any range. If your quote is above the top of the range, that is worth a second opinion.