What are the current SBA loan rates?

SBA loan rates vary by program, loan size, and term. This guide covers maximum allowed rates for SBA loan programs: 7(a) Standard and Express, 504, Microloans, and Disaster loans. 

Understanding the caps on interest rates can help you compare small business loan options and learn whether you're getting a competitive rate.

Current SBA loan rates in 2026

Here's what you can expect to pay across all major SBA programs. Rates shown are maximum allowable SBA rates and are based on the prime rate of 6.75% as of Jan. 5, 2026. Rates may change as the prime rate changes. These are SBA maximum allowable rates. Many borrowers qualify for lower rates depending on creditworthiness, loan structure, and lender policies.

*Maximum rates as of Jan. 5, 2026 based on 6.75% prime rate. For SBA 7(a) loans with variable rates, lenders also have the option of using the SBA Peg Rate or alternative base rates (see below).
**Rates updated monthly based on SBA debenture sales. Check with a CDC or lender for current rates.

How SBA loan rate caps work

The SBA sets maximum allowable rates for SBA 7(a) loans using a simple formula:

base rate + markup = maximum rate

For example, on a $50,000 variable rate loan: 

• Base rate: 6.75% (current prime)
• Allowed markup: 6.5%
• Maximum rate: 13.255

Your lender can charge less based on your creditworthiness, business strength, and relationship. A business owner with excellent credit and strong financials might get a rate of prime + 5.5% instead of the maximum prime + 6.25%, for example. 

Variable vs. fixed rates

Variable rates adjust with changes to the base rate, usually quarterly

Fixed rates lock in at approval, calculated from the prime rate on the first business day of the month

Lenders can't exceed SBA maximums, but they're free to compete by offering rates below those caps.

7(a) variable rate ceilings

7(a) loans that carry a variable rate that will either be tied to the prime rate, the SBA Optional Peg Rate, or an alternative base rate at the lender’s discretion. 

7(a) fixed rate ceilings

SBA 7(a) loan rates

SBA Standard 7(a) loans can use two base rates:

• Prime rate (most common)
• SBA Optional Peg Rate (quarterly weighted average)
• Alternative base rates (as of March 1, 2026)

7(a) variable rate ceilings

*Based on the current prime rate of 6.75% as of January 2026.

7(a) fixed rate ceilings

*Based on the current prime rate of 6.75% as of January 2026.

SBA Express loan rates

SBA Express loan rates are similar to Standard 7(a) rates; however, the maximum loan amount is $500,000 rather than $5 million.

SBA Express maximum variable rates

*Based on the current prime rate of 6.75% as of January 2026.

SBA Express maximum fixed rates

*Based on the current prime rate of 6.75% as of January 2026.

SBA microloan rates

SBA microloans max out at $50,000 and come from intermediary lenders (usually non-profit community lenders). They carry a maximum repayment period of seven years. 

The maximum interest rate is based on a formula that takes into account the loan amount (under or over $10,000) and the lender’s historic average loan size. (Lenders with historic average loan amounts less than $10,000 and called “specialized intermediaries.”)

Based on a U.S. Treasury rate of 3.745% (as of January 2, 2026): maximum rates would be:

*Rates calculated as of Jan. 2, 2026 and may vary depending on the lender’s cost of funds and other factors. 

SBA 504 loan rates

SBA 504 loans finance major fixed assets like real estate or equipment. There are two loan portions: one from the lender and one from the CDC portion. That CDC portion is funded through sales of SBA debentures, and carries a fixed rate.

Current 504 rates (CDC portion)

*Rates update monthly based on debenture sales. 

SBA Disaster Loan rates

Disaster loans are the only type of loans the SBA currently makes directly to borrowers. Rates are set when the disaster is declared. You can view SBA Disaster declarations here.

Rates depend on whether or not you have "credit available elsewhere"—meaning other private resources to fund your recovery.

Standard disaster loan rates

• Without credit elsewhere: Up to 4% (2.75% for nonprofits)
• With credit elsewhere: Up to 8%

Maximum term is 30 years, though businesses with credit elsewhere face a 7-year cap.

Economic Injury Disaster Loans (EIDL)

The EIDL and Military Reservist EIDL (MREIDL) program helps businesses cover working capital needs during disasters. These loans were widely used during COVID-19.

Though the COVID-EIDL program is closed, EIDL loans continue to be available in federally declared disaster areas. However, they are not available to businesses with credit available elsewhere. 

EIDL rates

Paycheck Protection Program (PPP)

PPP loan program is closed. When it was active it supported payroll during COVID-19 shutdowns. These loans carried a fixed 1% rate for either two or five years, depending on when the loan was approved. Most borrowers had their loans fully forgiven, converting them to grants.