SBA 7(a) Q&A
Short answer
On a 7(a) acquisition loan over $350K, expect a variable rate near WSJ Prime plus up to 3.0% (the regulatory cap); strong files price a quarter to three-quarters of a point under the cap.
SBA caps the lender's spread over Prime by loan size — 3.0% on loans over $350K, higher on smaller loans (13 CFR 120.213–215). The rate floats with Prime, repricing quarterly, so it falls automatically when the Fed cuts. The cap is a ceiling, not a quote: lenders price to the file.
Take today's WSJ Prime, add the cap for your loan size to get the maximum, then expect a strong file to land under it. Run the monthly payment at the cap to stress-test the deal, since that's the worst case at signing.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Last checked 2026-06-16. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-16 · SBA sources checked through 2026-06-16. FY2026 acquisition loans closed at an average initial rate around 8.7% in public records. 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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