What are SBA loan interest rates?

SBA loan interest rates are the percentages lenders can charge borrowers for financing through SBA loan programs. Rates vary by loan type, loan amount, term, and whether the rate is fixed or variable.

What changed this month?

  • The Prime rate (Wall Street Journal) decreased from 7.00% to 6.75%, reducing maximum SBA rate caps by 0.25% compared to December.
  • SBA 7(a) rate maximums now range from 9.75% to 14.75% depending on program and structure.
  • SBA interest rate structures and allowable spreads otherwise remain unchanged.
  • SBA loan rates continue to reflect higher benchmark rates relative to historic lows.

Quick summary.

  • SBA loan interest rates depend on base rate + lender markup, capped by SBA rules.
  • The current prime base rate is 6.75%.
  • SBA 7(a) rate maximums span 9.75% to 14.75% depending on loan size and term.
  • Other programs (504, Microloan, Express) have different structures and caps.

SBA loan interest rate table - January 2026.

SBA 7(a) loan interest rate maximums
Loan amount Max fixed rate Max variable rate
$25,000 or less Prime + 8% = 14.75% Prime + 6.5% = 13.25%
$25,000-$50,000 Prime + 7% = 13.75% Prime + 6.5% = 13.25%
$50,000-$250,000 Prime + 6% = 12.75% Prime + 6% = 12.75%
Over $250,000 Prime + 5% = 11.75% Prime + 3% = 9.75%

Base rate used: Wall Street Journal Prime Rate at 6.75%.

Other SBA program rates.

  • SBA 504 loans: Fixed rates based on Treasury and spread (typically around 3%).
  • SBA Microloans: Based on lender cost of funds (typically about 8-13%).
  • SBA Express: Same caps as 7(a), with faster decisions.

How SBA interest rates are calculated.

  1. Identify the relevant base rate. This is commonly Prime, but can also be the optional peg rate set quarterly by the SBA (currently 4.50%).
  2. Determine loan type, size, and term.
  3. Add the SBA’s allowable markup (subject to SBA maximum).
  4. Final offered rate may be lower, based on lender and borrower credit.

Example scenarios (January 2026).

  • $300,000 standard SBA 7(a) loan.
    • Fixed: up to 11.75% | Variable: Up to 9.75% (based on Prime.)
  • $40,000 SBA 7(a) small loan.
    • Fixed: Up to 13.75% | Variable: Up to 13.25%

What impacts the rate you actually get.

  • Your credit profile and business financials
  • Whether the lender uses a fixed or variable structure
  • Lender-specific spreads (below the SBA cap)
  • The prime rate at the time of pricing

Note: Actual APR often includes fees and guarantee costs beyond the interest rate cap.

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SBA loan interest rates vs. other financing options.

SBA interest rates vs. other financing options
Loan type Rate structure Typical rate
SBA 7(a) Prime + markup 9.75-14.75%
SBA 504 Fixed (5 and 10 year treasury issue rate + incremental peg) Approx. 3% of loan amount
Business term loan Market-based About 10-27% typical
Line of credit Variable About 10-28% typical

Sources

  • “U.S. Small Business Administration (SBA). Financial Transaction Analysis (FTA) Wiki – Downloads & Resources. Accessed January 2026.
  • “U.S. Small Business Administration (SBA). Interest Rates: January 2026: New Maximum Allowable Fixed Rate for 7(a) Loans.
  • “U.S. Small Business Administration (SBA). Interest Rates: January 2026: SBA Optional Peg Rates.
  • “U.S. Small Business Administration (SBA). Interest Rates: January 2026: Wall Street Journal Prime Rates.