What are current SBA loan interest rates in 2026?

SBA 7(a) loan rates in May 2026 are variable, tied to the prime rate (currently 7.50%) plus a lender spread. The maximum allowed spread is 2.25%–4.75% depending on loan size and maturity. This puts current 7(a) rates at approximately 9.75%–12.25%. SBA 504 loan rates are fixed for the CDC debenture portion — running approximately 6.50%–7.50% for 10-year and 20-year terms as of May 2026.

Are SBA loan rates fixed or variable?

SBA 7(a) loans can be fixed or variable. Most are variable, tied to the prime rate (adjusted quarterly or monthly). Fixed-rate 7(a) loans are available but less common. SBA 504 loans have a split structure: the bank portion (50% of project cost) carries market rates set by the bank; the CDC debenture portion (40%) carries a fixed rate set at debenture sale, locked in for the loan term (10 or 20 years).

How does the SBA set maximum interest rates?

The SBA sets maximum allowable rates that lenders cannot exceed. For variable-rate 7(a) loans, the maximum is: prime rate + 2.25% for loans over $50,000 with maturities under 7 years; prime + 2.75% for maturities over 7 years; prime + 3.25% for loans $25,000–$50,000; prime + 4.75% for loans under $25,000. Lenders may charge less than the maximum. The prime rate itself is set by banks and tracked by the Federal Reserve.

Can I negotiate my SBA loan rate?

Yes, to a degree. Lenders can charge any rate up to the SBA maximum. Borrowers with stronger credit profiles, more collateral, and more operating history often receive rates closer to prime + 2.25% rather than the maximum. Shopping multiple SBA lenders and using the SBA Lender Match tool can surface lower offers. SBA Preferred Lenders often offer more competitive rates to win business from qualified borrowers.

SBA Loan Rates 2026 — Current Interest Rates for 7(a), 504 and Express Loans

SBA loan rates are among the lowest available to small businesses because the government guarantee reduces lender risk. In May 2026, SBA 7(a) variable rates run approximately 9.75%–12.25%, while SBA 504 fixed rates for the CDC portion run 6.50%–7.50%. Rates change when the Federal Reserve adjusts the prime rate.

SBA 7(a) Loan Rates — Current Maximums (May 2026)

SBA 7(a) rates are tied to the prime rate, which is currently 7.50% (as of May 2026). The SBA caps the spread lenders can add above prime based on loan size and maturity:

Loan Size	Maturity Under 7 Years	Maturity Over 7 Years
Over $50,000	Prime + 2.25% = 9.75% max	Prime + 2.75% = 10.25% max
$25,001–$50,000	Prime + 3.25% = 10.75% max	Prime + 3.75% = 11.25% max
Up to $25,000	Prime + 4.25% = 11.75% max	Prime + 4.75% = 12.25% max

Maximum rates. Many lenders charge less. Prime rate changes when the Federal Reserve adjusts the federal funds rate.

SBA 504 Loan Rates — May 2026

SBA 504 loans have a split structure with two interest rates:

Portion	Size	Rate Type	Current Rate
Bank/lender portion	50% of project	Varies (lender sets)	Typically 7.5%–9.0%
CDC debenture portion	40% of project	Fixed for loan life	~6.50%–7.50%
Borrower down payment	10%–20%	N/A — your equity	N/A

The CDC debenture rate is locked at the time of debenture sale, not at application. It’s tied to 5-year and 10-year US Treasury rates, plus a small spread for SBA fees.

Blended effective rate: Combining both portions, the effective rate on a 504 project is typically 7.5%–8.5% overall — still significantly lower than conventional commercial real estate loans (currently 8%–10%+).

SBA Express Loan Rates

SBA Express loans carry higher maximum rates due to the faster approval speed and higher lender risk (SBA only guarantees 50% vs. 75%–85% for standard 7(a)):

Loan Size	Maximum Rate
Over $50,000	Prime + 4.50% = 12.00% max
Up to $50,000	Prime + 6.50% = 14.00% max

SBA Microloan Rates

SBA microloans (up to $50,000) are made through nonprofit intermediary lenders, not banks. Each intermediary sets its own rate:

Typical range: 8%–13% APR
Average term: 40 months
Average microloan: approximately $14,000

How SBA Rates Compare to Conventional Loans

Loan Type	Typical Rate (May 2026)
SBA 7(a) — standard	9.75%–12.25%
SBA 504 (effective blended)	7.5%–8.5%
Conventional bank term loan	8%–15%
Online lender term loan	15%–35%
Business line of credit	10%–40%
Merchant cash advance	40%–150%+ effective APR

SBA loans consistently offer the lowest rates for businesses that qualify — the tradeoff is a longer application process and stricter eligibility.

SBA Loan Fees (Add to Total Cost)

Interest rate isn’t the full story. SBA loans include guarantee fees charged by the SBA:

Loan Amount	SBA Guarantee Fee
Up to $150,000	0% (waived for loans ≤ $150K in 2026)
$150,001–$700,000	3.0% of guaranteed portion
$700,001–$5 million	3.5% of guaranteed portion (up to $1M) + 3.75% above $1M

Example: A $500,000 7(a) loan with 75% guarantee = $375,000 guaranteed. Fee = 3.0% × $375,000 = $11,250 — typically rolled into the loan balance.

Lenders may also charge packaging fees (up to $2,500), closing costs, and servicing fees.

How to Get the Best SBA Rate

Improve your credit score before applying — a 700+ score positions you to negotiate closer to the minimum spread
Borrow larger amounts — rates are capped lower on larger loan sizes
Use an SBA Preferred Lender — they have more flexibility and often more competitive pricing
Compare multiple lenders — use the SBA Lender Match tool at lendermatch.sba.gov
Consider shorter maturity — shorter terms carry lower maximum spreads

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

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