SBA loan basics
Short answer
SBA 7(a) loan interest rates are typically variable and based on a prime rate plus a lender-added spread, or can be a fixed rate.
The SBA sets maximum allowable interest rates, which are tied to a base rate (like the Prime Rate, Term SOFR, or WSJ Prime) plus a permissible spread. The spread can vary based on the loan amount and term. Fixed-rate options are also available, but less common for 7(a) loans.
A loan might be priced at "Prime + 2.75%," meaning if the Prime Rate is 8.50%, your interest rate would be 11.25%. This rate would adjust if the Prime Rate changes.
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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