SBA loan basics
Short answer
SBA 7(a) loan interest rates can be either variable (adjustable) or fixed, depending on the lender's offerings and the loan terms. Variable rates are more common, but fixed-rate options exist.
The SBA sets maximum allowable interest rates for 7(a) loans, which are tied to a base rate (like the Prime Rate, SOFR, or Term SOFR) plus a permissible spread. Lenders can offer either variable rates, which adjust with the base rate, or fixed rates, which remain constant for the loan's duration, within SBA's maximums.
A borrower might secure an SBA 7(a) loan with a variable rate of Prime + 2.75%, meaning their payment could change if the Prime Rate fluctuates. Alternatively, they might find a lender offering a fixed rate of 7.5% for the entire loan term.
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 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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.
More on interest rates
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day