What Are the Current SBA Loan Rates?

Last updated May 27, 2025

SBA loan rates are some of the most affordable in the

space, making these loans one of the best financing products available to small businesses. They’re issued by lenders like banks, credit unions, and alternative lenders and partially guaranteed by the government.

Interest rates for SBA loans depend on a handful of factors, including the specific

SBA loan

program, the loan amount, and the repayment terms. We’ll dive into the details of each of the most common programs and their rates below.

*Note that the current prime rate is 7.50%. Where relevant, we’ve calculated interest rates listed below using this rate.

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SBA Loan Rates for the 7(a) Loan Program

The

SBA 7(a) loan

program is the U.S. Small Business Administration’s primary loan program for assisting small businesses. These loans offer desirable terms and a wide range of acceptable use cases.

SBA 7(a) loans are the catch-all SBA loans that can service nearly any kind of small business for just about every reason—which means that it’s probably one of the first loan options you’ll want to consider.

SBA Express Loans

fall under the umbrella 7(a) program.

SBA 7(a) Loan Interest Rates

Max. variable rate by loan amount:

$50,000 or less: Prime rate + 6.50%
$50,001 to $250,000: Prime rate + 4.50%
$250,001 to $350,000: Prime rate + 4.00%
$350,001 or more: Prime rate + 3.00%

The

SBA lender

and the small business applicant negotiate the interest rate for a 7(a) loan. But the SBA sets maximum interest rates, and lenders can’t charge more than those designated rates.

SBA 7(a) loan rates depend on the current U.S. prime rate, a market rate that goes up or down based on how the U.S. economy is doing. Banks use the prime rate as a benchmark for setting rates on consumer and commercial loans. The prime rate is currently 7.50%.

SBA loan rates can either be fixed or variable. If the interest rate is fixed, your monthly payment stays exactly the same during the entire term of the loan. If the rate is variable, it can go up or down based on how the U.S. economy is performing and how high interest rates are on other types of loans. A variable interest will be pegged to the prime rate or other benchmark rates.

Based on the current prime rate, this table shows you the maximum interest rate you can expect on a 7(a) loan based on the amount borrowed.

Loan Amount	Max. fixed interest rate	Max. variable interest rate
$25,000 or less	15.5%	14.0%
$25,001 to $50,000	14.5%	14.0%
$50,001 to $250,000	13.5%	13.5%
$250,001 to $350,000	12.5%	12.0%
$350,001 or more	12.5%	10.5%

SBA 7(a) Loan Fees

The rates above do not account for fees that the SBA and lender may charge you. Those fees can increase the total annual cost, or annual percentage rate (APR), of your loan.

SBA loans have a guarantee fee based on the loan terms and amount. The lender initially pays the guarantee fee, but they may pass that expense on to you at closing. Here’s a breakdown of fees charged on the guaranteed portion of a 7(a) loan, effective from March 27, 2025 to September 30, 2025.

Loan Amount	Term of 12 months or less	Term greater than 12 months
$150,000 or less	0.25%	2%
$150,001 to $700,000	0.25%	3%
$700,001 to $5 million	0.25%	3.5% up to and including $1 million, plus 3.75% over $1 million

The lender may also charge administration-related fees, such as packaging and servicing fees, though the SBA does limit the kinds of additional fees a lender can charge.

SBA 7(a) Loan Terms

Although the SBA and your lender will base the repayment term length for your loan on your ability to repay, the purpose of the loan, and the useful life of the assets you’re financing, there are maximum term lengths for SBA 7(a) loans:

25 years for real estate
10 years for equipment
10 years for working capital

SBA 7(a) Loan Uses

SBA 7(a) loans go up to $5 million, with no minimum amount. One of the best aspects of an SBA 7(a) loan is its versatility. You can use this loan for any of the following reasons:

Purchase inventory, equipment, furniture, supplies, raw materials, land, buildings, fixtures, and more
Cover operational expenses
Meet your seasonal business needs
Cover the upfront costs of construction or other contract work
Set up, buy, expand, or begin operating a business
Refinance your current debt (in some situations)

SBA Loan Rates for the CDC/504 Loan Program

The

SBA CDC/504 loan

program is another of the most popular programs and also one of the more complex ones. This loan specifically helps small business owners finance major fixed asset purchases, such as equipment and commercial real estate.

CDC/504 SBA Loan Rates

A CDC/504 loan brings together funds from a few different sources:

Borrower: You’re responsible for a down payment of typically 10%.
Certified Development Company (CDC): A nonprofit that invests in its community and generally contributes 40% of the loan.
Lender: A bank or online lender usually funds 50% of the loan.

The rates on the CDC portion of the loan are subject to SBA rules and based on the

10-year U.S. Treasury notes

. CDC/504 loan interest rates are fixed and tend to hover around 5% to 7%.

SBA CDC/504 Loan Fees

The interest rate you’re quoted will include standard SBA, CDC, and lender fees rolled into the rate tied to the Treasury rate. You may encounter additional closing costs and fees in the process. Make sure you understand all of these fees and determine how they contribute to the overall cost of your SBA loan.

SBA CDC/504 Loan Terms

Like the 7(a) program, the CDC/504 loan program matches their low-interest rates with an equally ideal loan term: You can expect to pay this financing back over the course of 10 to 25 years, on a monthly schedule.

SBA CDC/504 Loan Uses

CDC/504 loans are designed specifically to fund the purchase of fixed assets and can be used for any of the following growth initiatives:

Buying land, including buildings
Improving land, including making street improvements, adding utilities, building parking lots, or landscaping
Renovating, converting, modernizing, or building new structures for your business
Purchasing large, long-term equipment and machinery
Upgrading machinery and equipment

SBA Loan Rates for the Microloan Program

The

SBA microloan

program provides loans of up to $50,000 to help small businesses, startups, and not-for-profit childcare centers launch and expand.

To make the microloan program possible, the SBA loans money to nonprofit, community-based lenders (called intermediaries). The intermediaries then loan money to small business owners.

The intermediaries are the ones to set the interest rates on SBA microloans, and rates typically fall between 8% and 13%.

SBA Microloan Fees, Terms, and Uses

The SBA doesn’t charge any fees on microloans. However, intermediaries can charge application and origination fees up to 3% of the loan amount. They can also charge out-of-pocket closing costs, such as appraisal and credit check fees.

Terms for the microloan program depend on your loan amount, funding use, lender-specific requirements, and the particular needs of your small business. The maximum loan term is seven years. You can use an SBA microloan as a

working capital loan

as well as to pay for inventory, supplies, furniture, equipment, and more.

More on SBA Loans

For information on how to qualify , read our

guide to SBA loan requirements

For details on how to apply , explore our

SBA loan application guide

If you’re ready to find an SBA loan , fill in the loan amount you need and click the button below.