SBA loan basics
Short answer
SBA 7(a) loan interest rates are typically variable, based on a base rate (like Prime Rate, SOFR, or Term Secured Overnight Financing Rate) plus a fixed lender spread. Fixed rates are also available but less common.
The SBA sets maximum interest rates that lenders can charge, expressed as a spread above a fluctuating base rate. The specific spread depends on the loan amount and repayment term, but lenders can negotiate below the maximum.
A variable rate loan might be set at "Prime Rate + 2.75%." If the Prime Rate is 8.5%, the borrower's rate would be 11.25%, adjusting whenever the Prime Rate changes. A fixed rate loan might be set at 10.5% for the entire 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 2026-06-13. 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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