For SBA lenders
Short answer
The maximum interest rate for a variable rate 7(a) loan is the chosen base rate plus a maximum allowable spread, which varies depending on the loan amount and maturity. Spreads are capped at 2.25% to 3.00% over the base rate.
SBA sets maximum allowable interest rates for 7(a) loans based on a chosen base rate (e.g., Prime Rate, SOFR, or Term SOFR) plus a permissible spread. The maximum spread for loans over $50,000 is 2.25% for loans with a maturity of less than 7 years, and 2.75% for maturities of 7 years or more. For loans of $50,000 or less, the maximum spreads are slightly higher (e.g., 3.25% for less than 7 years, 3.75% for 7+ years).
For a $750,000 7(a) loan with a 10-year term, if the Prime Rate is 8.50%, the maximum allowable interest rate the lender can charge is 8.50% (Prime) + 2.75% (max spread for >$50k, 7+ years) = 11.25%.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
7(a) Alternative Base Rate Options
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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