SBA loan rates today: 7(a) maximums by loan size (October 2026)
Edited by Moe Ameen · Published
SBA 7(a) rates are negotiated with your lender, but the SBA caps them. With the prime rate at 7.00% (Federal Reserve, October 28, 2026), the most a lender can charge on a variable-rate 7(a) loan runs from 13.50% on loans of $50,000 or less down to 10.00% on loans over $350,000. The SBA's fixed-rate caps for October 2026 run from 12% to 15%. Microloans generally run 8% to 13%.
Key takeaways
- Variable 7(a) caps: prime plus 6.5 points at $50,000 or less, down to prime plus 3 above $350,000. That's 13.50% to 10.00% today.
- Fixed 7(a) caps for October 2026: 15%, 14%, 13% and 12%, depending on loan size.
- These are ceilings. Your lender can charge less, and you can negotiate.
- 504 loans carry fixed rates tied to 10-year Treasury rates. Microloans generally cost 8% to 13%.
What is the maximum interest rate on an SBA 7(a) loan today?
On a variable-rate loan it's prime plus 3 to 6.5 points, depending on size. With prime at 7.00%, that's 10.00% to 13.50%.
| Loan amount | Maximum spread | Maximum rate today |
|---|---|---|
| $50,000 or less | Prime + 6.5 points | 13.50% |
| $50,001 to $250,000 | Prime + 6.0 points | 13.00% |
| $250,001 to $350,000 | Prime + 4.5 points | 11.50% |
| Over $350,000 | Prime + 3.0 points | 10.00% |
The regulation measures the cap from the base rate in effect on the first business day of the month [2]. The SBA's own October 2026 file puts that prime rate at 7.00%, the same figure the Federal Reserve reports [3][4]. The cap is set on the date the SBA receives the loan application [2].
What are the SBA's maximum fixed rates?
For October 2026 the SBA caps fixed 7(a) rates at 15% on loans of $25,000 or less. The cap falls to 12% on loans over $250,000.
| Loan amount | Spread over prime | Maximum fixed rate, October 2026 |
|---|---|---|
| $25,000 or less | Prime + 8 points | 15.00% |
| $25,001 to $50,000 | Prime + 7 points | 14.00% |
| $50,001 to $250,000 | Prime + 6 points | 13.00% |
| Over $250,000 | Prime + 5 points | 12.00% |
The SBA sets these caps as prime plus 5 to 8 percentage points and posts the resulting rates every month on its FTA wiki [4][5]. The regulation says only that a fixed rate must be reasonable and that the SBA publishes the maximum [10].
Which base rate can an SBA lender use?
Prime or the SBA's Optional Peg Rate. Since March 2026 lenders can also use 5-year or 10-year Treasury rates or SOFR, with a prime-based cap.
The regulation allows the prime rate or the SBA's Optional Peg Rate, which the SBA publishes every quarter [2]. For October 1 to December 31, 2026, the peg rate is 5.00% [4]. A notice effective March 1, 2026 added the 5-year Treasury, the 10-year Treasury and SOFR as alternative base rates. Even then, the rate can't go above prime plus the allowed spread for the loan size [6].
What rates do SBA 504 loans and microloans carry?
504 loans have fixed rates tied to 10-year Treasury rates. Microloan rates are set by each nonprofit lender and generally run 8% to 13%.
- 504 loans: long-term, fixed-rate financing for major fixed assets. The SBA says the rate is pegged to an increment above the current 10-year Treasury rate, and fees total about 3% of the debt, which can be financed [7].
- 504 terms: 10, 20 or 25 years [7].
- Microloans: up to $50,000 over up to seven years. The SBA says rates vary by intermediary lender and generally fall between 8% and 13% [8].
What fees and prepayment charges come with a 7(a) loan?
The SBA charges lenders a guaranty fee they can pass on to you. Loans of 15 years or more charge 5%, 3% and 1% for prepaying in years one to three.
Lenders pay an upfront guaranty fee on each 7(a) loan, and they're allowed to pass it on to you. The SBA sets fee amounts each year in information notices [1]. On loans with terms of 15 years or longer, prepaying 25% or more in the first three years costs 5%, then 3%, then 1% of the amount prepaid [1]. To see what a capped rate means in monthly payments, try the business loan calculator.
Glisten data
SBA 7(a) rate ceilings at a glance, October 2026
| Loan amount | Variable cap | Fixed cap |
|---|---|---|
| $25,000 or less | 13.50% | 15.00% |
| $25,001 to $50,000 | 13.50% | 14.00% |
| $50,001 to $250,000 | 13.00% | 13.00% |
| $250,001 to $350,000 | 11.50% | 12.00% |
| Over $350,000 | 10.00% | 12.00% |
We built this by lining up the two SBA rate schedules, which use different size bands. NerdWallet's October 2026 table, also using a 7% prime, shows the same range: 10% to 13.5% variable and 12% to 15% fixed [9].
Is this right for you?
Best for
- Checking whether an SBA loan quote sits under the legal ceiling.
- Comparing a 7(a) offer with an online loan's APR before you sign.
Not ideal for
- Predicting the rate a lender will offer you. Lenders price below the cap based on your file.
- Total cost. Add the guaranty fee and any other fees to compare APRs.
Frequently asked questions
What is the SBA loan interest rate right now?
There isn't one rate. The SBA caps variable 7(a) loans at 10.00% to 13.50% with prime at 7.00%, and fixed loans at 12% to 15% for October 2026 [2][3][4].
Is the SBA rate based on prime?
Usually. The base can be prime or the SBA's Optional Peg Rate, and since March 2026 also Treasury rates or SOFR, capped at prime plus the spread [2][6].
How often do SBA maximum rates change?
When prime moves. The SBA posts new fixed caps monthly and the peg rate quarterly [4][5].
Can I negotiate an SBA loan rate?
Yes. The SBA sets ceilings; you and the lender agree on the actual rate under them [1].
What rate do SBA microloans charge?
The SBA says rates vary by intermediary lender and are generally 8% to 13% [8].
How we know this
On October 29, 2026 we read the Federal Reserve's H.15 release and its weekly prime series, the SBA's monthly rate files on its FTA wiki (prime, maximum fixed rates and the Optional Peg Rate), 13 CFR 120.213 and 120.214, the SBA's 7(a) terms page, two SBA Federal Register notices, and the SBA's 504 and microloan pages. Variable caps are our arithmetic: prime plus the regulation's spread. We cross-checked the result against NerdWallet's rate table.
- 7(a) terms, conditions and eligibility, SBA. Checked October 29, 2026.
- 13 CFR 120.214: What conditions apply for variable interest rates?, eCFR. Checked October 29, 2026.
- H.15 Selected Interest Rates (bank prime loan), Federal Reserve Board. Checked October 29, 2026.
- FTA wiki downloads: WSJ prime, maximum fixed rates and Optional Peg Rates, October 2026, SBA. Checked October 29, 2026.
- Maximum allowable 7(a) fixed interest rates (FR Doc. 2022-16162), Federal Register (govinfo). Checked October 29, 2026.
- 7(a) alternative base rate options (FR Doc. 2026-02660), Federal Register (govinfo). Checked October 29, 2026.
- 504 loans, SBA. Checked October 29, 2026.
- Microloans, SBA. Checked October 29, 2026.
- Average business loan rates, NerdWallet. Checked October 29, 2026.
- 13 CFR 120.213: What fixed interest rates may a Lender charge?, eCFR. Checked October 29, 2026.