Current 2026 rate ranges across U.S. small-business loans. Prime rate sits around 7.5%. SBA 7(a): 9.5-11%. SBA Express: 12-14%. Conventional bank term loans: 8-13%. Equipment financing: 7-18% (asset-secured, looser credit). Working capital loans: 9-30%. Business lines of credit: 8-30%. Commercial real estate: 8-12%. Revenue-based financing: 1.15-1.40 factor rate (≈25-60% APR). Merchant cash advance: 1.20-1.50 factor rate (≈40-100%+ APR). All variable; tied to Fed funds and prime. This page updates as rates move.
Business loan rates in 2026 sit at the higher end of recent history due to the Federal Reserve's extended above-trend funds rate. The variables that drive your actual quote are personal FICO, time in business, monthly revenue, the product you choose, and the lender. This page is a reference: rate ranges, what drives each one, and how to know whether a quote you have in hand is competitive. For deeper context on individual products see SBA loans, equipment financing, working capital loans, and commercial real estate loans.
2026 Rates by Loan Type
| Loan Type | Rate Range (2026) | Term | Drives Rate |
|---|---|---|---|
| SBA 7(a) | 9.5-11% APR (prime+2.5-3%) | 7-25 yrs | Loan size, term length, FICO |
| SBA Express | 12-14% APR (prime+4.5-6.5%) | Up to 10 yrs | Speed premium; lower SBA guarantee |
| SBA 504 (CDC portion) | ~5.5-6.5% (long-term Treasury + spread) | 10/20/25 yrs | Treasury yields; bank first mortgage rate also applies |
| Conventional bank term loan | 8-13% APR | 3-7 yrs | FICO, banking relationship, collateral |
| Equipment financing (A-tier) | 7-9% APR | 5-7 yrs | Equipment quality > credit when both are strong |
| Equipment financing (B/C-tier) | 10-18% APR | 3-5 yrs | FICO, equipment age, down payment |
| Business line of credit | 8-30% APR | 12 mo renewable | Bank vs online lender; secured vs unsecured |
| Working capital loan | 9-30% APR | 6-24 mo | FICO, revenue stability, lender |
| Commercial real estate | 8-12% APR | 15-25 yrs amort, 5-10 yr balloon | LTV, DSCR, asset class, location |
| Bridge loan | 11-15% APR | 6-24 mo | Speed and exit certainty |
| Fix-and-flip | 10-14% APR + 1-3 pts | 6-18 mo | ARV, experience, market |
| Revenue-based financing | 1.15-1.40 factor (≈25-60% APR) | Variable (revenue %) | Revenue consistency |
| Merchant cash advance | 1.20-1.50 factor (≈40-100%+ APR) | 3-12 mo | Bank statement strength |
How These Rates Are Set
Reference rate plus spread (bank-style products)
SBA, conventional bank, line of credit, and most working capital loans price as prime rate + a spread. Prime moves with the Federal Reserve's federal funds rate. As of April 2026, prime is around 7.5%, having moved up from ~3.25% in early 2022 with the Fed's tightening cycle.
Treasury-indexed (CRE, SBA 504)
Commercial real estate loans and the SBA 504 CDC portion typically price off long-term Treasury yields. Spreads vary by asset class, LTV, and DSCR.
Lender-set (asset-based equipment, MCA, RBF)
Asset-based equipment lenders, merchant cash advance providers, and revenue-based financing companies set rates on internal models that factor in cost of funds, default risk, and competitive pressure. These products move less directly with prime.
What Actually Drives Your Quote
- Personal FICO — the single biggest input. 720+ vs 680 vs 620 produces materially different quotes on the same product.
- Time in business — 2+ years opens SBA and conventional; 6+ months opens equipment and most asset-based.
- Monthly revenue and consistency — bank-statement underwriters score deposit pattern more than peak revenue.
- Use of funds — matching product to use of funds drops the rate. A working capital request shoehorned into an MCA costs 3-5x more than the right product would.
- Industry — some industries (restaurants, hospitality, certain retail) face industry-specific rate premiums or restrictions.
- Loan amount — small loans (under $50K) carry higher fixed-cost overhead and often higher rates per dollar.
- Collateral — secured beats unsecured by 200-500 bps in most product categories.
How to Compare Quotes Properly
Two ways to mislead yourself when comparing rates:
- Comparing rate without fees. A 9% rate with 5% origination on a 2-year term has roughly the same APR as a 12% rate with no origination. Always look at total APR.
- Comparing factor rate to APR. A 1.30 factor rate looks lower than 30% APR — but the factor rate over 6 months is closer to 80% APR. Convert factor rates before comparing. See MCA vs working capital loan for the conversion math.
2026 Rate Deep-Dives by Product
Each product has its own page with a full credit-tier or lender-type breakdown for 2026:
- SBA loan rates 2026
- Equipment financing rates 2026
- Business line of credit rates 2026
- Working capital loan rates 2026
- Business term loan rates 2026
- Merchant cash advance rates 2026
- Commercial real estate loan rates 2026
- Commercial bridge loan rates 2026
- Revenue-based financing rates 2026
- Fix-and-flip loan rates
- Securities-based lending rates 2026
- Startup financing rates & costs
- Bad-credit business loan rates 2026
- Unsecured business loan rates 2026
Next Step
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Frequently Asked Questions
What are SBA 7(a) loan rates in 2026?
SBA 7(a) rates run prime + 2.5-3.0% in 2026. With prime around 7.5%, that puts effective 7(a) rates at roughly 9.5-11% APR, depending on loan size and term.
What are equipment financing rates in 2026?
Equipment financing runs 7-18% APR depending on credit tier, equipment age, and lender. A-tier (720+ FICO) gets 7-9%; sub-600 borrowers run 16-22% with specialty lenders.
What is the current prime rate?
As of April 2026, the U.S. prime rate sits around 7.5%. Prime moves with Federal Reserve decisions; check WSJ Prime Rate or your bank for the live number.
Are MCA rates really 40-100% APR?
Yes. Merchant cash advances are priced as factor rates (1.20-1.50 typical) on short terms (3-12 months). When converted to APR, the effective cost runs 40-100%+ depending on term length. The same factor rate is far more expensive at 6 months than 12.
How often do these rates change?
SBA, conventional, equipment, and working-capital rates all reference prime, which adjusts based on Federal Reserve actions. MCA and RBF factor rates change less frequently and are driven more by lender risk appetite than by Fed moves. Check current rates before signing any term sheet.
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