SBA Loan Interest Rates 2025: What You'll Actually Pay
SBA loan rates are among the most competitive available to small businesses — because the SBA caps what lenders can charge. Here's what you need to know about how rates work for each program.
SBA 7(a) Loan Rates
7(a) rates are tied to a base rate (usually the Wall Street Journal Prime Rate) plus a lender spread. The SBA sets maximum allowable spreads:
| Loan Size | Maturity ≤7 yrs | Maturity >7 yrs |
|---|---|---|
| Over $50,000 | Prime + 2.25% | Prime + 2.75% |
| $25,000–$50,000 | Prime + 3.25% | Prime + 3.75% |
| Under $25,000 | Prime + 4.25% | Prime + 4.75% |
When Prime is 8.5%, a $250,000 loan with a 10-year term would carry a maximum rate of 8.5% + 2.75% = 11.25%. Many preferred lenders beat the maximum.
SBA 504 Loan Rates
The 504 program's defining feature is its fixed rate for the life of the loan. The CDC portion (40% of project) carries a rate tied to the 10-year Treasury yield plus a small spread for SBA fees. This rate is set monthly at debenture sale and locked at closing.
The conventional lender's 50% portion is negotiated separately and may be fixed or variable at market terms.
SBA Microloan Rates
Microloan rates range from 8% to 13%, set by the individual intermediary lender. Rates reflect the borrower's creditworthiness, business age, and the intermediary's own cost of capital.
What Affects Your SBA Loan Rate?
- Loan amount: Larger loans generally carry lower rate caps
- Loan term: Longer terms carry slightly higher maximum rates
- Collateral: Strong collateral may lead to lenders offering below-maximum rates
- Credit score: Higher scores give you negotiating leverage
- Lender competition: Getting quotes from multiple lenders can lower your rate
- Relationship banking: Existing customers at some banks get preferential rates
SBA Loan Fees
In addition to interest, SBA loans carry a guarantee fee charged by the SBA (paid to the lender at closing and typically passed to the borrower). Fee rates vary by loan size and term. For loans under $150,000, the SBA often waives guarantee fees — check current SBA fee schedules for the latest figures.
Frequently Asked Questions
SBA 7(a) rates are based on the Prime Rate, SOFR, or SBA optional peg rate, plus a lender's spread. The SBA sets maximum spreads based on loan size and maturity.
SBA 7(a) loans can be fixed or variable — it depends on the lender's offer and the borrower's preference. SBA 504 loans always have fixed rates on the CDC (SBA) portion. Microloans can be either.
For 7(a) loans with maturities over 7 years: Prime + 2.75% for loans over $50,000; Prime + 3.75% for loans under $50,000. These are maximums — lenders may charge less.
SBA 504 debenture rates are set monthly when new debentures are sold to investors. Once your loan closes, the rate is locked for the full term (10, 20, or 25 years).
View full SBA program comparison or get quotes from local lenders.