SBA loan basics
Short answer
SBA 7(a) loan interest rates typically range from Prime Rate plus 2.25% to Prime Rate plus 4.75%, depending on the loan size and term. The maximum allowable rates are set by the SBA.
The SBA sets maximum allowable interest rates for 7(a) loans, which are a function of the Wall Street Journal Prime Rate (or other approved base rates) plus a negotiated spread. The spread allowed decreases as the loan amount increases, with higher spreads permitted for smaller loans.
If the Prime Rate is 8.50%, a smaller loan (e.g., under $50,000) might have a maximum rate of Prime + 4.75% (13.25%), while a larger loan (e.g., over $250,000) might cap at Prime + 2.75% (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
SBA 7(a) Loans Overview
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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