Borrower guide · Process & cost
SBA loan rates and maximum spreads
SBA rates are negotiable up to a ceiling. Knowing the ceiling — and what most borrowers actually pay — tells you whether a quote is fair.
How the rate is built
A 7(a) rate is a base — usually the prime rate — plus the lender’s spread. Variable is most common; fixed-rate options exist with their own SBA-set caps. The spread is where lenders compete, and where the SBA sets a ceiling.
The maximum spreads over prime
The SBA caps the variable spread by loan size:
- $50,000 or less: prime + 6.5%
- $50,001 – $250,000: prime + 6.0%
- $250,001 – $350,000: prime + 4.5%
- Over $350,000: prime + 3.0%
These are maximums, not the going rate. A strong file on a larger loan should land near the low end.
What borrowers actually pay
The federal record is clear that most borrowers pay far below the cap. On recent funded loans the median rate is about 10% — roughly prime + 2.5% — with the middle half between 8.25% and 11.25%. If your quote is near the ceiling for your size, ask why, or compare lenders.
Rate check calculator
Enter a quoted rate and loan size to see where it sits against the SBA cap and the market median.
Check your rate vs. the caps →From the loan record
our dataAcross 235,484 recent funded loans, the median rate is 10.0%, and the interquartile range is 8.25–11.25% — a real, checkable benchmark for judging any offer. Compare a specific quote below.
Common questions
What is the maximum interest rate on an SBA loan?
The variable spread over prime is capped by loan size — from prime + 3.0% on loans over $350,000 up to prime + 6.5% on the smallest. These are ceilings, not typical rates.
What interest rate do most SBA borrowers pay?
The median recent funded rate is about 10% — roughly prime + 2.5% — with most between 8.25% and 11.25%.
Are SBA loan rates fixed or variable?
Most are variable (prime plus a spread), but fixed-rate options exist with their own SBA-set caps.
Keep going
Rules described here follow SBA SOP 50 10 8 (effective June 1, 2025) and can change; lenders add their own overlays. This is education, not advice — confirm specifics with your lender. Figures cited as “our data” come from the SBA 7(a) & 504 FOIA record, released 2026-06-30.