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) remains unchanged from February.
  • SBA 7(a) rate maximums remain unchanged.
  • Effective March 1, 2026, the SBA has expanded the allowable base rates for 7(a) loans. While the Prime Rate remains the most common, lenders can now use the Secured Overnight Funding Rate (SOFR), or 5- and 10-year Treasury Note Rates.
  • SBA loan rates continue to reflect higher benchmark rates relative to historic lows.

Quick summary.

  • SBA 7(a) interest rates are calculated using a Base Rate + a lender markup. As of March 1, 2026, lenders can choose from five different base rates.
    • WSJ Prime Rate: 6.75% (Most common)
    • SBA Optional Peg Rate: 4.50% (Updated quarterly)
    • NEW: 30-Day SOFR (Secured Overnight Funding Rate): 3.67% as of March 5, 2026
    • NEW: 5-Year Treasury Note Rate: 3.51% as of February 27, 2026
    • NEW: 10-Year Treasury Note Rate: 3.97% as of February 27,2026
  • 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 - March 2026.

Note on the "Prime Cap": While lenders may now use alternative base rates like SOFR or Treasury Notes, your total interest rate is legally protected. It cannot exceed the maximum rates listed in thet table below, which are calculated using the WSJ Prime Rate.

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% (Mar 2026).

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.

As of March 1, 2026, the formula for a variable-rate SBA 7(a) loan is: (BaseRate)+(LenderSpread)=TotalInterestRate

  1. Identify the relevant base rate. The lender now selects one of several SBA-approved benchmarks:
    1. WSJ Prime Rate: The most common benchmark, set by the largest U.S. banks.
    2. SBA Optional Peg Rate: A quarterly rate set by the SBA for those seeking more stability.
    3. NEW: 30-Day SOFR: A broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities.
    4. NEW: 5- or 10-Year Treasury Notes: Fixed-income instruments backed by the U.S. government.
  2. Determine the lender spread. Also called a markup, the "spread" is the additional percentage a lender adds to the base rate to cover their risk and profit.
    1. Negotiable: This is the part of the rate you can negotiate based on your business's creditworthiness and DSCR.
    2. Capped: The SBA limits how high this spread can go based on your loan amount.
  3. Apply the "Prime Cap". This is the most critical calculation rule for March 2026. Even if a lender uses an alternative base rate like SOFR or a Treasury Note, the final interest rate cannot exceed the maximum allowable rate as if it were calculated using the Prime Rate.
  4. Final offered rate may be lower, based on lender and borrower credit.

Example scenarios (March 2026).

If you are applying for a $500,000 loan, the max allowable spread is Prime +3.0%.

Base Rate Component Prime Calculation SOFR Calculation
Base Rate (Mar 2026) 6.75% 3.67%
Typical Spread +3.00% +3.00%
Calculated Rate 9.75% 6.67%
Legal Maximum 9.75% 9.75%
  • $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
  • The lenders chosen base rate, if applying for a 7(a) loan.

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) Base Rate + markup Maximum 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