SBA Loan Rates 2026
SBA loans offer some of the lowest rates on the market, but rates can change based on the Federal Reserve's actions.
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SBA loan rates are the lowest they've been in nearly three years, thanks to a recent rate cut by the Federal Reserve. Keep reading to see current SBA loan interest rates, learn how they're determined and find out what fees apply to each SBA loan type.
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Current SBA loan interest rates
The SBA's maximum rates are based on the daily prime rate, which changes based on actions taken by the Federal Reserve.
SBA 7(a) loan rates
The 7(a) loan is the SBA’s most popular business loan and provides funding for a variety of uses, including managing daily operations, purchasing new products and refinancing high-interest loans. The loan size determines interest rates for SBA 7(a) loans, and rates can be fixed or variable.
Fixed rates:
| SBA loan size | Maximum interest rate |
|---|---|
| $25,000 or less | 14.75%. |
| $25,001 to $50,000 | 13.75%. |
| $50,001 to $250,000 | 12.75%. |
| $250,001 or more | 11.75%. |
| *Rates calculated with the current prime rate of 6.75%. Updated January 2026. | |
Variable rates:
| SBA loan size | Maximum interest rate |
|---|---|
| $50,000 or less | 13.25%. |
| $50,001 to $250,000 | 12.75%. |
| $250,001 to $350,000 | 11.25%. |
| $350,001 or more | 9.75%. |
| *Rates calculated with the current prime rate of 6.75%. Updated January 2026. | |
🤓 Nerdy Tip
Use our SBA loan calculator to estimate your monthly loan payments, including interest and fees. SBA 504 loan rates
Business borrowers looking to buy land, buildings or major equipment with long-term, fixed-rate financing can apply for SBA 504 loans. These loans are partially funded by certified development companies (CDCs), nonprofit organizations focused on community economic development.
Interest rates for SBA 504 loans are tied to the 10-year U.S. Treasury note and typically range from about 5% to 7%.
How SBA loan rates are set
The SBA sets interest rate guidelines for lenders, which helps keep small-business owners' borrowing costs low.
How SBA 7(a) rates are set
Interest rates for SBA 7(a) loans are negotiated between the borrower and lender, but must stay within the SBA’s maximum limits. The SBA publishes the maximum fixed interest rates on its FTA wiki on a monthly basis.
The maximum rates for variable rate loans change based on the size of the loan:
| Loan size | $50,000 or less | $50,001 - $250,000 | $250,001 - $350,000 | $350,001 or more |
| Maximum interest rate | *Prime + 6.5% | *Prime + 6.0% | *Prime + 4.5% | *Prime + 3% |
| *The current prime rate, as of January 2026, is 6.75%. | ||||
These interest rates apply to all loans within the 7(a) program, including SBA Express loans.
Export working capital program loans are the only exception to this rule; lenders can set their own interest rates on EWCP loans .
Remember that interest rates make up only part of your expenses. Your APR represents the total cost of borrowing, including your interest rate and all applicable loan fees.
SBA 7(a) loan terms
- 7(a) loans max out at $5 million (there is no minimum loan amount).
- The SBA guarantees 85% of your loan if it’s less than $150,000 and 75% if it’s more than $150,000.
- The maximum amount that SBA will guarantee is $3.75 million.
How SBA 504 rates are set
SBA CDC/504 loans require collateral — typically the financed assets — along with personal guarantees from the business owners. Interest rates for SBA 504 loans are based on the 10-year Treasury note and are fixed for the life of the loan.
The total effective rate includes the base Treasury note rate plus the SBA guarantee fee, CDC servicing fee and a central servicing agent fee. Rates typically fall within a 5% to 7% range, depending on market conditions.
SBA 504 loans usually require a down payment of at least 10% of the cost of the project. A traditional lender, such as a bank, puts up 50% of the loan, and a certified development company (CDC) puts up as much as 40%. The SBA guarantees 100% of the CDC portion of the loan.
SBA 504 loan terms
- 504 loans are available in 10-, 20- or 25-year terms.
- The maximum loan amount is $5 million (select projects may qualify for $5.5 million).
- Funding of the loan is split between the borrower, the bank and a community development company.
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SBA 7(a) loan fees
SBA 7(a) loans come with two types of fees: guarantee fees and annual service fees. Guarantee fees cover the SBA’s costs in case of default, while service fees compensate lenders for making and administering loans.
7(a) loan guarantee fees are based on the loan amount and maturity date and apply only to the guaranteed portion of the loan. Lenders are required to pay the SBA the guarantee fee, but some pass the expense on to you. However, the SBA limits the maximum amount you will be charged.
The SBA sets and announces guarantee fees every fiscal year. For the 2026 fiscal year, which runs from Oct. 1, 2025 to Sept. 30, 2026, the fees are as follows:
Loans with terms of 12 months or less:
- Loans of $150,000 or less: 0.25% of the guaranteed portion.
- Loans from $150,001 to $700,000: 0.25% of the guaranteed portion.
- Loans from $700,001 to $5 million: 0.25% of the guaranteed portion.
Loans with terms exceeding 12 months:
- Loans of $150,000 or less: 2% of the guaranteed portion.
- Loans from $150,001 to $700,000: 3% of the guaranteed portion.
- Loans from $700,001 to $5 million: 3.5% of the guaranteed portion of the loan up to and including $1 million, plus 3.75% of the guaranteed portion over $1 million .
Note about SBA loans for small manufacturers
The SBA is waiving guarantee fees on some loans issued to small manufacturers (NAICS sectors 31 to 33) in fiscal year 2026:
- 7(a) loans. No fee on loans of $950,000 or less.
- 504 loans. No fee on loans of all sizes.
SBA 504 loan fees
SBA 504 loan terms are primarily made up of the following:
- An interest rate based on the Treasury bond rate.
- A guarantee fee that is paid to the SBA.
- A servicing fee that is paid to the CDC.
- A fee paid to the central servicing agent.
When applying, you'll be quoted an effective interest rate, which is the sum of those three fees and the Treasury bond rate. However, you may also have to pay additional servicing charges (e.g. processing fee, closing fee, funding fee) , meaning your total cost of borrowing (or annual percentage rate) will be slightly higher than your effective rate.
» MORE: Can you have multiple SBA loans?
Frequently asked questions
What are current SBA loan rates?
Current SBA loan rates for 7(a) loans range from 9.75% to 14.75%. SBA 504 loan rates usually fall within the range of 5% to 7%. The rate you receive will ultimately vary based on your loan type, lender and qualifications.
Are SBA loans variable or fixed rate?
SBA loans can be either fixed or variable, depending on the loan type and the lender. Although SBA 7(a) loans offer both fixed and variable rate options, about 80% are variable — according to the SBA. SBA 504 rates are fixed for the life of the loan.
Why are SBA loan rates so high?
SBA loan rates are higher than in recent years because they’re tied to the prime rate, which has risen due to broader economic conditions. The rates also include fees like the SBA guarantee fee and servicing charges, which are factored into the APR. Even so, SBA loans remain one of the most competitive financing options available to small businesses.
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- 1. U.S. Small Business Administration. Types of 7(a) loans. Accessed Jan 5, 2026.
- 2. U.S. Small Business Administration. SBA Information Notice: 7(a) Fees Effective October 1, 2025 for Fiscal Year 2026 and 90-Day Rule Clarification. Accessed Jan 5, 2026.
