Typical SBA Loan Rates in 2026: 7(a), 504, and Express

SBA loan rates are a moving target in 2026 because they’re primarily indexed to prime rate (which moves with Fed policy) and 10-year Treasury (which moves with markets). The SBA doesn’t set the rate — it sets a maximum rate the lender can charge. Most banks price right at the cap; a smaller number price below if they like the deal. This guide breaks down current SBA 7(a), 504, and Express rates by loan size and term, and the levers that move your final number. For the broader product overview see SBA loans.

SBA 7(a) Loan Rates in 2026

The SBA 7(a) is the most common SBA loan. Rates can be variable (most common) or fixed (less common, slightly higher), and the cap depends on loan size and term:

• Loans > $350,000, 7+ year term: max prime + 2.25% (variable) → ~9.75% APR
• Loans > $350,000, <7 year term: max prime + 2.25% → ~9.75% APR
• Loans $50,001–$250,000, 7+ year term: max prime + 3.75% → ~11.25% APR
• Loans $50,001–$250,000, <7 year term: max prime + 3.25% → ~10.75% APR
• Loans $25,001–$50,000: max prime + 4.25% → ~11.75% APR
• Loans ≤ $25,000: max prime + 4.75% → ~12.25% APR

Fixed-rate 7(a) loans add roughly 200–225 basis points to the variable cap, so a $500K fixed 7(a) might price around 11.75–12.00% fixed. Most borrowers pick variable because the fixed premium is high and 7(a) loans typically pay off well before maturity (refinance, sale, payoff).

SBA 504 Loan Rates in 2026

The SBA 504 is a two-part loan: a bank first mortgage (typically 50% of project) and a CDC/SBA second mortgage (typically 40%), with 10% borrower equity. Each part is priced separately:

• CDC/SBA portion (the “504 debenture”): Fixed for 20 or 25 years, priced off 10-year Treasury + a spread. In May 2026 the all-in CDC rate is approximately 5.5–6.75% fixed. This is the headline-grabbing “low SBA rate” you see advertised.
• Bank first mortgage: Set by the bank, not the SBA — typically 7–9% fixed or variable, 5/25 or 10/25 amortization structure. Some banks offer 5-year fixed with a balloon; others offer fully amortizing 25-year.
• Blended cost of capital: Roughly 6.5–7.5% effective on the financed 90%, which is materially cheaper than 7(a) for owner-occupied commercial real estate.

504 is the right structure for owner-occupied real estate or heavy machinery purchases of $500K+ where the 90% LTV and long fixed CDC portion outweigh the multi-party closing complexity. For the comparison see SBA 7(a) vs 504 and SBA owner-occupied CRE.

SBA Express Loan Rates in 2026

SBA Express loans (max $500K) trade speed and lighter paperwork for a higher rate cap:

• Loans > $50,000: max prime + 4.5% → ~12.0% APR
• Loans ≤ $50,000: max prime + 6.5% → ~14.0% APR

Express is faster to close (36-hour SBA decision vs weeks for standard 7(a)) but more expensive. Most well-qualified borrowers will save thousands by waiting for a standard 7(a) instead.

What Actually Moves Your SBA Rate Within the Cap

The SBA cap is the ceiling. Whether your lender prices at the cap or below depends on:

• Credit profile: FICO 720+ and strong cash flow may get prime + 2.0–2.25% on a $500K+ 7(a). FICO 660–700 with thinner cash flow gets priced right at the cap.
• Collateral coverage: Strong real estate or equipment collateral can shave 25–50 bps.
• Time in business + relationship: Banks where you have a 3+ year deposit relationship will price more aggressively to keep the relationship.
• Loan size: $750K+ deals get more competitive pricing; sub-$150K deals usually price at the cap because the bank’s fixed underwriting cost is the same regardless of loan size.
• Industry: Restaurants, hospitality, and gas stations typically price at or near the cap. Professional services, medical, and manufacturing often price 25–50 bps below.

SBA Loan Fees (the Other Half of the Cost)

Rate isn’t the only cost. SBA loans carry a guaranty fee paid to the SBA, which is rolled into the loan amount:

• Loans ≤ $150,000: Guaranty fee waived in most years.
• Loans $150,001–$700,000: 3% of the guaranteed portion (typically ~75% of the loan).
• Loans $700,001–$1,000,000: 3.5% of the guaranteed portion.
• Loans > $1,000,000: 3.5% on first $1M of guaranteed portion + 3.75% above.

For 504, expect ~2.5–3% in total fees (CDC processing, SBA guaranty, funding fee, underwriter fee). Add lender packaging fees ($2,500–$5,000) and standard closing costs. Always look at the total cost of capital (rate + fees) when comparing offers, not just the rate.

How SBA Rates Compare to Alternatives

To put SBA rates in context:

• SBA 7(a) (~9.75–12.25%): Cheaper than online term loans, more expensive than bank conventional. Best for borrowers who don’t qualify for bank conventional pricing.
• SBA 504 (~6.5–7.5% blended): Comparable to or better than conventional CRE for owner-occupied. Hard to beat for the right deal.
• Conventional bank term loans: 7–10% APR for strong borrowers, 10–14% for typical small business.
• Online term loans (BlueVine, OnDeck, Fundbox): 12–30%+ APR but fund in days.
• Equipment financing: 7–15% APR depending on credit and equipment.
• Working capital / MCA: 30–80%+ APR equivalent (expensive but fast and accessible).

For a deeper comparison see SBA 7(a) vs conventional bank loan and equipment financing vs SBA.

When SBA Rates Will Move Next

Because 7(a) variable rates are pegged to prime, they move when the Fed moves. If the Fed cuts in 2026, your existing 7(a) variable rate drops at the next adjustment date (typically quarterly). If the Fed hikes, you go up. 504 CDC rates reset monthly based on 10-year Treasury auctions for the debenture — if Treasury yields fall, the next month’s CDC rate drops correspondingly.

For new applications, lock the rate when you receive the commitment letter — don’t try to time the market. The cost of delaying a deal usually exceeds the benefit of a 25 bp rate move.

Get Matched with SBA Lenders

Different SBA lenders price the same deal differently. The fastest way to find your best rate is to apply through a marketplace that submits to multiple SBA preferred lenders simultaneously. Get matched with SBA lenders — one application, multiple offers, no credit impact on initial review. Also see SBA credit requirements, SBA approval timeline, and our loan calculator.