Current SBA Loan Rates — February 2026
Comprehensive guide to SBA 7(a), 504, and Microloan interest rates for February 2026. Includes rate formulas, current prime rate, and comparison tables.
SBA loans consistently offer the most competitive interest rates available to small businesses, thanks to the government guarantee that reduces lender risk. As of February 2026, SBA rates have benefited from the Federal Reserve's rate cuts in late 2025, making this an attractive time to pursue SBA financing.
This guide covers current rates for all three major SBA programs: 7(a), 504, and Microloans. Understanding how each program prices loans helps you compare offers and negotiate effectively.
Current Prime Rate: 6.75%
The prime rate is the foundation for SBA 7(a) loan pricing. As of February 2026, the Wall Street Journal Prime Rate stands at 6.75%, down from 7.75% six months ago.
The prime rate moves in lockstep with the Federal Reserve's target rate. When the Fed cut rates three times in late 2025, the prime rate dropped accordingly. The current federal funds target range is 3.50%-3.75%.
Variable Rate Impact
Most SBA 7(a) loans carry variable rates tied to prime. When prime decreases, your monthly payment decreases — but if the Fed raises rates in the future, payments will increase. About 80% of 7(a) loans are variable rate.
SBA 7(a) Loan Rates
SBA 7(a) rates are calculated as Prime Rate plus a spread. The SBA sets maximum allowable spreads based on loan size and term:
| Loan Amount | Maturity | Max Spread | Current Max Rate |
|---|---|---|---|
| $50,000 or less | < 7 years | Prime + 4.25% | 11.00% |
| $50,000 or less | 7+ years | Prime + 4.75% | 11.50% |
| $50,001-$250,000 | < 7 years | Prime + 3.25% | 10.00% |
| $50,001-$250,000 | 7+ years | Prime + 3.75% | 10.50% |
| $250,001-$500,000 | < 7 years | Prime + 2.75% | 9.50% |
| $250,001-$500,000 | 7+ years | Prime + 3.25% | 10.00% |
| Over $500,000 | < 7 years | Prime + 2.25% | 9.00% |
| Over $500,000 | 7+ years | Prime + 2.75% | 9.50% |
SBA Express Loan Rates
SBA Express loans allow lenders to charge higher spreads in exchange for faster approval times:
| Loan Amount | Max Spread | Current Max Rate |
|---|---|---|
| $50,000 or less | Prime + 6.50% | 13.25% |
| Over $50,000 | Prime + 4.50% | 11.25% |
SBA 504 Loan Rates
SBA 504 loans have a unique structure with two components: a bank loan and a CDC (Certified Development Company) loan. The CDC portion offers fixed rates tied to Treasury securities.
| Term | Treasury Basis | Current Treasury Rate | Estimated Effective Rate |
|---|---|---|---|
| 10-Year Loan | 5-Year Treasury | 3.83% | 5.80%-6.30% |
| 20-Year Loan | 10-Year Treasury | 4.29% | 6.25%-6.75% |
| 25-Year Loan | 10-Year Treasury | 4.29% | 6.35%-6.85% |
The 504 rate advantage comes from the fixed-rate CDC portion. While the bank portion may be variable, the 40% CDC portion locks in today's rates for the entire loan term. This provides payment predictability that variable-rate 7(a) loans cannot match.
504 for Real Estate
For commercial real estate purchases over $500,000, the 504 program typically offers the best overall cost due to lower down payment requirements (10%) and fixed-rate stability on the CDC portion.
SBA Microloan Rates
SBA Microloans are administered by nonprofit intermediary lenders, which set their own rates within SBA guidelines. Rates are generally higher than 7(a) loans but remain competitive for smaller loan amounts.
| Feature | Details |
|---|---|
| Maximum Loan Amount | $50,000 |
| Typical Rate Range | 8.00%-13.00% |
| Maximum Term | 6 years |
| Rate Type | Fixed |
| Typical Loan Size | $10,000-$25,000 |
SBA Loan Rate Comparison
Here is how the three main SBA programs compare on rates and terms:
| Feature | 7(a) Loans | 504 Loans | Microloans |
|---|---|---|---|
| Current Rate Range | 9.00%-13.50% | 5.80%-6.85% (CDC) | 8.00%-13.00% |
| Rate Type | Usually variable | CDC: Fixed / Bank: Varies | Fixed |
| Maximum Amount | $5 million | $5.5M (CDC) + Bank | $50,000 |
| Maximum Term | 25 years (RE) | 25 years | 6 years |
| Down Payment | 10%-20% | 10% | Varies |
| Best Use | General purpose | Real estate, equipment | Startups, small needs |
Fixed vs. Variable Rate Considerations
Choosing between fixed and variable rates involves trade-offs:
- Variable rate (most 7(a) loans) — Lower starting rate, but payments fluctuate with prime rate changes. Good if you expect to pay off early or if rates may decline further.
- Fixed rate (504 CDC portion, some 7(a)) — Higher starting rate, but payments never change. Good for long-term holds and budgeting certainty.
Given that rates have already dropped significantly and the Fed has signaled patience on further cuts, fixed rates may be attractive for borrowers planning to hold loans for many years.
How to Get the Best SBA Rate
While the SBA sets maximum rates, actual rates vary by lender and borrower profile:
- Shop multiple lenders — Rate quotes can vary by 1-2% between lenders. Get at least three quotes.
- Strengthen your credit — A FICO score above 720 typically qualifies for the best rates.
- Increase your down payment — Larger equity injection reduces lender risk and may lower rates.
- Provide collateral — Fully secured loans often receive better pricing.
- Consider loan size — Larger loans qualify for lower maximum spreads under SBA rules.
- Work with PLP lenders — Preferred Lender Program (PLP) lenders often have more competitive pricing.
Remember that the total cost of an SBA loan includes more than interest. Factor in the SBA guarantee fee, closing costs, and any ongoing service fees when comparing loan offers.
Rate Lock and Timing
SBA 7(a) variable rates adjust with prime, so there is no traditional rate lock. Your rate simply moves when prime moves. For 504 loans, the CDC rate is set at funding based on current Treasury rates — not at application or approval.
If you are pursuing a 504 loan, be aware that Treasury rates can move during the 60-90 day closing process. There is no guarantee you will get today's exact rate.
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Read more →Important Disclosure
Not Financial Advice: The information provided in this article is for general informational purposes only and does not constitute financial, legal, or professional advice. You should consult with qualified professionals before making any financial decisions.
No Guarantee of Financing: Liminal Lending Co. is a business loan marketplace that connects borrowers with third-party lenders. We are not a lender and do not make credit decisions. Submitting an application does not guarantee approval or funding. Loan terms, rates, and availability vary by lender and are subject to borrower qualifications and lender criteria.
Third-Party Lenders: All loan products are offered by independent third-party lenders. Liminal Lending Co. is an Independent Sales Organization (ISO) and receives compensation from lenders for successful referrals. Terms and conditions of any loan are between you and the lender.
Rate Information: Rates, terms, and fees mentioned in this article are estimates based on publicly available information and may not reflect current market conditions or specific lender offers. Actual rates depend on creditworthiness, business financials, and lender policies.
Information May Change: Financial markets, lending regulations, and economic conditions are subject to rapid change. While we strive to keep our content accurate and up-to-date, information in this article may become outdated. Always verify current rates, terms, program availability, and regulatory requirements with lenders and official sources before making financial decisions.