SBA loan basics
Short answer
SBA 7(a) loan interest rates are typically variable and tied to a base rate like the Prime Rate, plus a lender's spread. They are capped by the SBA, usually ranging from Prime + 2.25% to Prime + 4.75% for larger loans.
The SBA sets maximum allowable interest rates for 7(a) loans. Rates are often variable, indexed to the Wall Street Journal Prime Rate (or other approved base rates like SOFR or Term Secured Overnight Financing Rate) plus an allowable margin, which varies based on the loan size and term. Fixed rates are less common but available.
If the Prime Rate is 8.50%, a borrower might get a variable rate of Prime + 2.75%, resulting in an initial rate of 11.25%. For a smaller loan or longer term, the spread could be higher, up to Prime + 4.75%.
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.
More on what the rate is
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