SBA loan basics
Short answer
No, the SBA sets maximum limits for interest rates and fees, but the specific terms within those limits are negotiated between the borrower and the individual SBA-approved lender.
The SBA establishes caps on interest rates (tied to a base rate plus a maximum spread) and certain fees (like the guaranty fee). However, lenders have discretion to negotiate specific rates and other terms with borrowers, as long as they remain within these SBA-mandated maximums.
The SBA might set a maximum rate of Prime + 2.75%. A lender might offer a borrower Prime + 2.0% based on their creditworthiness. The borrower can negotiate within this range, but cannot exceed the SBA's 2.75% cap.
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) Fees Effective During Fiscal Year 2026
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.
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