SBA loan basics
Short answer
The interest rate on an SBA 7(a) loan is primarily determined by a base rate (like Prime) plus a lender's fixed spread, but factors like loan size, repayment term, the borrower's creditworthiness, and collateral also play a role.
The SBA sets maximum interest rates based on a chosen base rate (e.g., Prime Rate, SOFR) plus a maximum allowable spread. Lenders set their specific spread, which can vary based on the borrower's risk profile, the loan's term, and the collateral. Smaller loans and longer terms may command slightly higher spreads.
For a $350,000 loan, a lender might offer Prime + 2.75%. For a $2,000,000 loan, the same lender might offer Prime + 2.25% because larger loans often have lower risk-adjusted spreads.
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