Business loan rates · October 2026
The Fed Held Rates on October 28: What It Means for Business Loans
The Federal Reserve left its target range at 3.75% to 4.00% on October 28, 2026, in a 10–2 vote. Two officials dissented in favor of another quarter-point hike, and futures markets now put roughly an 85% chance on a hike at the December 8–9 meeting. Prime stays at 7.00%, so the SBA caps and bank-line pricing you see today are unchanged. Here is what the hold means for each type of business financing and what to do in the six weeks before December.
Did the Fed Change Business Loan Rates on October 28?
No. The Fed held the federal funds target range at 3.75% to 4.00%, so the Wall Street Journal prime rate stays at 7.00%. SBA 7(a) variable rates are still capped at 10.00% to 13.50% depending on loan size, bank lines of credit still price at about Prime + 1 to Prime + 4 (roughly 8% to 11%), and fixed-rate loans and merchant cash advances you already hold do not change. The vote was 10–2, with two officials wanting a hike, and markets price about an 85% chance of a quarter-point increase on December 9. If that happens, Prime moves to 7.25% on December 10 and every Prime-based product reprices.
The Numbers After the October 28 Decision
The decision came a month after the Fed raised rates in September for the first time since 2023. Governor Lisa Cook and Cleveland Fed President Beth Hammack voted against holding and preferred a quarter-point increase. The statement said the economy is growing at a strong pace, job gains have kept pace with the workforce and that more information will help the Committee decide what is needed for a timely return of inflation to 2%. Treasury yields barely moved, with the 10-year still close to 5%, which matters for fixed-rate SBA 504 and bank term loans.
What Did Not Change for Your Business
| Product | How it is priced | Rate today (Prime 7.00%) | Changed on Oct 28? |
|---|---|---|---|
| SBA 7(a) under $50,000 | Max Prime + 6.50 | Up to 13.50% | No |
| SBA 7(a) $50,001 to $250,000 | Max Prime + 6.00 | Up to 13.00% | No |
| SBA 7(a) $250,001 to $350,000 | Max Prime + 4.50 | Up to 11.50% | No |
| SBA 7(a) over $350,000 | Max Prime + 3.00 | Up to 10.00% | No |
| Bank line of credit | Prime + 1 to + 4 typical | About 8% to 11% | No |
| Business-purpose HELOC | Prime + 0 to + 2 typical | About 7% to 9% | No |
| Fixed-rate term or equipment loan you hold | Fixed at funding | Your contract rate | No |
| Merchant cash advance you hold | Fixed factor rate and payback | Your contract factor | No |
Because Prime did not move, nothing on your current statements changes because of this meeting. Our SBA loan rates guide and business line of credit rates show the full ranges, and Prime rate is 7% explains how Prime is set.
What a December Hike Would Do
Markets read the two dissents as a sign the Fed is not done. Pricing after the meeting put the chance of a quarter-point hike on December 9 at roughly 83% to 85%. As of November 1, futures (CME FedWatch) put about a 75% chance on a quarter-point hike and about 15% on a half point, with only about a 10% chance of no change. If the Fed raises the range to 4.00% to 4.25%, Prime moves to 7.25% the next business day.
| Product | Today (Prime 7.00%) | If Prime goes to 7.25% |
|---|---|---|
| SBA 7(a) caps by size | 10.00% to 13.50% | 10.25% to 13.75% |
| Bank line of credit (Prime + 1 to + 4) | About 8.00% to 11.00% | About 8.25% to 11.25% |
| $250,000 SBA 7(a), 10 years, Prime + 3 | $3,304 a month at 10.00% | $3,338 a month at 10.25% |
| $100,000 line fully drawn, Prime + 2 | $9,000 a year at 9.00% | $9,250 a year at 9.25% |
| $150,000 business HELOC, Prime + 1 | $12,000 a year at 8.00% | $12,375 a year at 8.25% |
Monthly payment on a $250,000 SBA 7(a) loan over 10 years
Principal and interest, Prime + 3.00% margin. A December hike would add about $35 a month, or roughly $4,200 over the life of the loan.
If the Fed moves a half point instead: Prime would go to 7.50%, SBA 7(a) caps to 10.50% to 14.00%, and the $250,000 SBA 7(a) example above to about $3,373 a month. Merchant cash advances and other factor-rate products are not tied to Prime, so offers still start from a factor of 1.08 either way.
The Rate Path So Far
Fed and prime rate decisions, 2025 to 2026
Prime moves the business day after each Fed decision, by the same amount.
Fed Chair Kevin Warsh also announced that the Committee will move from eight scheduled meetings a year to seven next year and six the year after. Fewer meetings means each one can move rates further, so it is worth knowing where your loans are tied to Prime before each decision.
What to Do Before December 9
- If you need an SBA loan, start the file now. A 7(a) loan usually takes 30 to 60 days and the rate is set at closing. A file opened in early November can close before or close to the December decision. Ask whether a fixed rate is available.
- Open a line of credit while Prime is 7.00%. The margin you agree to today stays with the line; only Prime moves. See business lines of credit.
- Lock fixed-rate money for one-time needs. Equipment, a build-out or inventory with a clear payback is better on a fixed-rate term loan than on a line that may reset higher. Compare in business term loans.
- Check your variable loans for a conversion option. Some bank lines and SBA loans allow a switch to a fixed rate.
- Do not reach for a cash advance because of the Fed. A factor rate does not move with Prime, but it is usually far more expensive than any Prime-based product. Use the factor rate vs APR guide to compare.
Common Questions
Did the Fed raise rates on October 28, 2026?
No. The Federal Reserve held the federal funds target range at 3.75% to 4.00% in a 10–2 vote. Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented in favor of a quarter-point hike.
What is the prime rate after the October 2026 Fed meeting?
The Wall Street Journal prime rate is still 7.00%, where it has been since September 17, 2026. Prime sits 3.00 points above the top of the Fed range and only changes when the Fed moves.
Did SBA loan rates change after the October 28 decision?
No. SBA 7(a) variable rates are capped at Prime plus 3.00 to 6.50 points depending on loan size, so with Prime at 7.00% the caps stay at 10.00% to 13.50%.
Will the Fed raise rates in December 2026?
Markets price about an 85% chance of a quarter-point hike at the December 8–9 meeting, based on CME FedWatch after the October decision. If the Fed hikes, Prime would rise to 7.25% the next business day.
Should I borrow now or wait until after December?
If you need the money and it has a clear return, borrowing or opening a line now is more likely to save than cost, because markets expect rates to go up, not down. You can refinance later if rates fall.
Is RAN Funding a lender?
No. RAN Funding is a business financing broker. We present your application to our lender network and show you the offers you qualify for; the funding partner sets the approval, amount, rate, fees and terms.
Sources
- Fed keeps interest rates unchanged, but two officials dissented in favor of a rate hike (October 28, 2026) — CNN Business
- Fed Chooses Patience, Leaves Rates Unchanged (October 28, 2026) — Charles Schwab
- Calendar: December 2026 (FOMC meeting December 8–9) — Board of Governors of the Federal Reserve System
- H.15 Selected Interest Rates (bank prime loan rate) — Board of Governors of the Federal Reserve System
- 7(a) loan program terms, conditions and eligibility (maximum interest rates) — U.S. Small Business Administration
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