Short answer: as of October 14, 2026, SBA 7(a) variable rates are capped at about 10% to 13.5%, depending on loan size, because the Prime Rate is 7.00%. Fixed-rate 7(a) loans are capped at about 12% to 15%. SBA 504 loans priced at about 7% for a 25-year loan in October 2026. SBA microloans generally run about 8% to 13%. These are maximums and typical ranges. Your lender sets your actual rate within them.
We update this page when the Prime Rate or SBA rules change. Every figure shows its source and date.
SBA 7(a) loan rates
The SBA caps 7(a) rates as a spread over the Prime Rate, which was 7.00% in October 2026 (Bankrate). The same caps apply to SBA Express loans.
Variable-rate 7(a) loans
| Loan amount | Maximum rate | At a 7.00% Prime Rate |
|---|---|---|
| Over $350,000 | Prime + 3% | 10.0% |
| $250,001 to $350,000 | Prime + 4.5% | 11.5% |
| $50,001 to $250,000 | Prime + 6% | 13.0% |
| $50,000 or less | Prime + 6.5% | 13.5% |
Source: SBA. Most 7(a) loans are variable, so the rate moves when the Prime Rate does, on the adjustment schedule set in your loan note.
Fixed-rate 7(a) loans
| Loan amount | Maximum rate | At a 7.00% Prime Rate |
|---|---|---|
| Over $250,000 | Prime + 5% | 12.0% |
| $50,001 to $250,000 | Prime + 6% | 13.0% |
| $25,001 to $50,000 | Prime + 7% | 14.0% |
| $25,000 or less | Prime + 8% | 15.0% |
Fixed-rate caps apply only if the rate stays fixed for the whole term, with no adjustment or reset (Federal Register, 2022).
SBA 504 loan rates
A 504 loan usually splits a project three ways: a bank loan for about half, a loan from a Certified Development Company (CDC) backed by an SBA debenture for up to 40%, and your down payment of at least 10%. The SBA portion carries a fixed rate set when the debentures are sold each month.
| Term | Standard projects | Manufacturing, food supply chain and rural projects |
|---|---|---|
| 25 years | 6.97% | 6.74% |
| 20 years | 6.97% | 6.73% |
| 10 years | 6.59% | 6.30% |
October 2026 pricing, completed October 8, from SomerCor, a CDC. The second column is lower because SBA fees on those loans are waived for fiscal year 2027. September 2026 pricing was 6.54% for 25 years (SomerCor). The bank portion of a 504 project has its own rate, negotiated with the bank.
SBA microloan rates
Microloans of up to $50,000 are made by nonprofit intermediary lenders, which set the rate within SBA limits tied to their own cost of funds. Rates generally fall between about 8% and 13% (QuickBooks). See the SBA microloan program to find an intermediary near you.
SBA loan fees for fiscal year 2027
For 7(a) loans approved from October 1, 2026 to September 30, 2027, the upfront SBA guarantee fee on loans longer than 12 months is:
| Loan amount | Upfront guarantee fee |
|---|---|
| $150,000 or less | 2% of the guaranteed portion |
| $150,001 to $700,000 | 3% of the guaranteed portion |
| $700,001 to $5 million | 3.5% of the guaranteed portion up to $1 million, plus 3.75% of any guaranteed portion above $1 million |
| 12 months or less (any amount) | 0.25% of the guaranteed portion |
The fee is 0% for loans of $700,000 or less to manufacturers and businesses in rural areas, and for SBA Express loans to veteran-owned businesses. Lenders also pay an annual service fee of 0.55% of the guaranteed balance. Source: SBA Information Notice 5000-881797, summarized by NAGGL. Lenders may also charge packaging or closing costs within SBA limits. Interest on an SBA loan is generally tax deductible, and fees like these are usually deducted over the life of the loan; see are business loan payments tax deductible?
What an SBA loan costs per month
Monthly payments on 10-year 7(a) loans at the maximum variable rate for each size, before fees:
| Loan | Rate | Monthly payment | Total interest |
|---|---|---|---|
| $50,000 | 13.5% | $761 | $41,365 |
| $150,000 | 13.0% | $2,240 | $118,759 |
| $250,000 | 13.0% | $3,733 | $197,932 |
| $500,000 | 10.0% | $6,608 | $292,904 |
A $1,000,000 loan over 25 years at the 504 rate of 6.97% would cost about $7,049 a month. Real 504 projects blend this with the bank's rate. Try your own numbers in our SBA loan calculator.
What determines your SBA loan rate
- The Prime Rate. Every 7(a) cap moves with it.
- Loan size. Smaller loans have higher caps.
- Fixed or variable. Fixed caps are higher, in exchange for payments that never change.
- Your lender and your file. Lenders can charge less than the cap, and stronger credit, cash flow and collateral help you negotiate.
- The program. 504 rates are set by monthly debenture sales, not by Prime.
How to get a lower SBA rate
- Borrow through the right program. Real estate and major equipment usually cost less through a 504 loan.
- Compare at least two SBA lenders. Caps are maximums, not set prices.
- Strengthen your application. Check the SBA loan requirements and have every document ready.
- Ask about fees and the rate's reset schedule, not just the starting rate.
If you are not sure an SBA loan fits, our SBA loans guide explains the programs, and small business loan rates compares SBA loans with bank and online options.
Frequently Asked Questions
What is the current SBA loan interest rate?
As of October 2026, with the Prime Rate at 7.00%, variable-rate SBA 7(a) loans are capped at about 10% to 13.5% depending on loan size, and fixed-rate 7(a) loans at about 12% to 15%. Lenders can charge less than these maximums.
What is the SBA 504 loan rate right now?
October 2026 pricing put the SBA portion of a standard 504 loan at 6.97% for 25 or 20 years and 6.59% for 10 years. Manufacturing, food supply chain and rural projects priced lower because SBA fees on them are waived for fiscal year 2027.
What are SBA microloan interest rates?
SBA microloans of up to $50,000 generally carry rates of about 8% to 13%. Each nonprofit intermediary lender sets its rate within SBA limits tied to its cost of funds.
Are SBA loan rates fixed or variable?
Both are allowed. Most 7(a) loans are variable and move with the Prime Rate. Fixed-rate 7(a) loans have higher caps. The SBA portion of a 504 loan is always fixed.
What fees come with an SBA loan?
For fiscal year 2027, the upfront SBA guarantee fee on a 7(a) loan longer than 12 months ranges from 2% to 3.75% of the guaranteed portion, depending on loan size, and is waived on loans of $700,000 or less to manufacturers and rural businesses. Lenders may also charge packaging and closing costs.
How often do SBA loan rates change?
Variable 7(a) rates change when the Prime Rate changes, which follows Federal Reserve decisions, and your loan adjusts on the schedule in your note. SBA 504 rates are set each month when new debentures are sold.
Sources
- U.S. Small Business Administration: 7(a) terms, conditions and eligibility (variable-rate caps)
- Federal Register, August 1, 2022: maximum fixed interest rates for 7(a) loans
- Bankrate: Wall Street Journal Prime Rate (7.00% in October 2026)
- SomerCor: October 2026 SBA 504 interest rates and September 2026
- SBA Information Notice 5000-881797: FY 2027 7(a) program fees, with the NAGGL summary
- QuickBooks: SBA loan rates (microloan range)
- Payment examples calculated with our SBA loan calculator