What Are SBA Loan Rates in October 2026?
The Federal Reserve H.15 release dated 5 October 2026 reports a bank prime loan rate of 7.00%. SBA 7(a) variable rates are capped at Prime plus a spread that narrows as the loan gets larger: 13.50% on loans of $50,000 or less, 13.00% from $50,001 to $250,000, 11.50% from $250,001 to $350,000, and 10.00% above $350,000. SBA 7(a) fixed rates run from 15.00% on loans of $25,000 or less down to 12.00% on loans of $250,001 or more. For the October 2026 funding cycle, published standard SBA 504 effective rates are 6.600% for 10 years, 6.975% for 20 years and 6.974% for 25 years. These apply to the CDC/SBA portion, not the separate bank loan. Because variable rates are tied to Prime, every change in the Prime Rate moves these ceilings with it.
Current Rates
SBA loans are made by lenders and partially guaranteed by the Small Business Administration. The SBA does not set the rate, but it does cap it — which is why these are ceilings rather than quotes.
7(a) variable rates
| Loan size | Maximum spread over Prime | Maximum rate today |
|---|---|---|
| $50,000 or less | Prime + 6.5% | 13.50% |
| $50,001 to $250,000 | Prime + 6.0% | 13.00% |
| $250,001 to $350,000 | Prime + 4.5% | 11.50% |
| $350,001 or more | Prime + 3.0% | 10.00% |
7(a) fixed rates
Confirm the applicable monthly fixed-rate limits in the SBA Fiscal Transfer Agent rate publications.
| Loan size | Maximum fixed rate |
|---|---|
| $25,000 or less | 15.00% |
| $25,001 to $50,000 | 14.00% |
| $50,001 to $250,000 | 13.00% |
| $250,001 or more | 12.00% |
504 rates
SBA 504 financing supports eligible real estate and major fixed assets. CDC Small Business Finance lists standard effective rates of 6.600% for 10 years, 6.975% for 20 years and 6.974% for 25 years, effective 8 October 2026. Published rates include CDC, SBA and central servicing fees and apply to the CDC/SBA debenture portion. The accompanying bank loan is priced separately. Refinancing and manufacturing categories have different published rates. Check the linked rate table for the applicable funding cycle.
Checked 10 October 2026. Variable ceilings above are calculated using 7.00% Prime plus the SBA maximum spread. An existing variable loan resets according to its note, not necessarily on the day Prime changes. Fixed-rate maximums are published monthly by the SBA Fiscal Transfer Agent.
How SBA Rates Are Set
Three things determine your rate inside the ceiling.
- Loan size. The permitted spread narrows as the loan grows, so larger loans are cheaper per dollar. This is mechanical, not negotiable.
- The lender. Within the cap, the lender prices for its own risk and cost of funds. Two lenders can quote materially different rates on the same file.
- Your file. Credit score, time in business, debt service coverage and collateral all move you within the band.
A variable rate is quoted as Prime plus a spread, so it adjusts over the life of the loan. A fixed rate is higher at the outset and does not. Which is better depends on your view of where Prime goes, and on whether your business can absorb a payment that rises.
Which SBA Program Fits
| 7(a) | 504 | |
|---|---|---|
| Typical use | Working capital, equipment, acquisition, refinancing | Owner-occupied real estate and major fixed assets |
| Rate basis | Prime plus a capped spread, or fixed | Long-term bond yields |
| Rate reference | Maximums of 10.00% to 15.00% depending on size and structure; negotiated rates may be lower | 6.600%–6.975% for the standard CDC/SBA portion in October 2026; bank portion priced separately |
| Term | Up to 10 years for most uses, up to 25 for real estate | 10, 20 or 25 years |
If you are financing a building, 504 is almost always the cheaper route. For everything else, 7(a) is the workhorse.
What SBA Pricing Costs You in Speed
SBA capital is the cheapest we arrange, and it is the slowest. Expect 30 to 60 days to fund, two years of trading history, annual revenue of $250,000 or more shown on two years of business tax returns, a credit score from 680, and no bankruptcies or outstanding collections. You will produce two years of business and personal tax returns, bank statements, a profit and loss statement and a voided business check.
That is the right trade for a planned investment. It is the wrong trade for a cash flow gap that closes in three weeks, which is what the faster products exist for — at a cost that reflects the speed. If you are not sure which side of that line you are on, the useful question is whether the money is funding an opportunity you chose or a shortfall that chose you.
How to Compare SBA Loan Offers
Ask each lender for the same details: the base rate and spread, whether pricing is fixed or variable, the reset schedule, total fees, monthly payment, term and prepayment conditions. A maximum permitted rate is a ceiling, not the rate every borrower pays.
For 504 financing, request both the bank-loan terms and the CDC/SBA terms. Comparing only the debenture rate leaves out part of the financing cost. For a Prime-based 7(a) loan, ask how the payment changes if Prime rises or falls.
The credit, revenue and operating-history figures below describe RAN Funding’s stated program criteria; individual lenders and SBA products can have different requirements. Funding estimates depend on a complete file, underwriting and closing.
What the October 28 Fed Meeting Could Do to SBA Rates
SBA 7(a) variable rates are capped at Prime plus 3.00 to 6.50, so every Fed move passes straight through at the next quarterly reset. With Prime at 7.00% since September 17, here is where the caps sit now and where they would go.
| Loan size | Cap now (Prime 7.00%) | If the Fed holds Oct 28 | If the Fed hikes 0.25 |
|---|---|---|---|
| $350,001+ | 10.00% variable | 10.00% | 10.25% |
| $250,001 – $350,000 | 11.50% | 11.50% | 11.75% |
| $50,001 – $250,000 | 13.00% | 13.00% | 13.25% |
| $50,000 or less | 13.50% | 13.50% | 13.75% |
As of mid-October, CME FedWatch put roughly a 66% probability on a hold and 34% on a hike, with a December hike priced as more likely than not after September CPI came in at 3.7%. On a $250,000 10-year 7(a) loan at Prime + 3, each quarter point is about $35 a month. Fixed-rate 7(a) options and the 504 program (10-year debentures fixed at 6.3% – 7.0% in October) are the hedge; scenarios and what to do before the meeting are in prime rate is 7%: what it means for business loan rates.
Common Questions
What is the maximum SBA 7(a) interest rate right now?
With the Prime Rate at 7.00% in October 2026, SBA 7(a) variable rate ceilings are 13.50% on loans of $50,000 or less, 13.00% from $50,001 to $250,000, 11.50% from $250,001 to $350,000, and 10.00% above $350,000. Fixed rate ceilings run from 15.00% on the smallest loans down to 12.00% on loans of $250,001 or more.
Are SBA rates fixed or variable?
Both are available. Variable rates are quoted as Prime plus a capped spread and adjust over the life of the loan, so they start lower and can rise. Fixed rates start higher and do not move. The choice depends on your view of Prime and on whether your business can absorb a payment that increases.
How long does an SBA loan take to fund?
Expect 30 to 60 days. SBA underwriting is thorough and the documentation requirement is substantial: two years of business and personal tax returns, bank statements, a profit and loss statement and a voided business check. If you need capital inside a week, an SBA loan is not the product.
Why is my SBA quote below the maximum rate?
The SBA caps the rate rather than setting it. Within the cap, the lender prices for its own cost of funds and for the risk in your file, so credit score, trading history, debt service coverage and collateral all move you within the band. Larger loans also carry a narrower permitted spread, which makes them cheaper per dollar borrowed.
Will SBA loan rates go up on October 28, 2026?
Only if the Federal Reserve raises the federal funds rate. Markets priced about a one-in-three chance of a quarter-point hike at the October 27 – 28 meeting as of mid-October. A hike would move Prime to 7.25% the next day and raise every SBA 7(a) variable cap by 0.25 points at the next reset; a hold keeps the caps at 10.00% to 13.50%.
Sources
- 7(a) loan program terms, conditions, and eligibility — U.S. Small Business Administration
- H.15 Selected Interest Rates: 5 October 2026 — Federal Reserve Board
- SBA 504 Loan Rates — CDC Small Business Finance
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