Last updated: February 21, 2026
Current SBA 7(a) Loan Interest Rates (February 2026)
Looking for current SBA 7(a) loan interest rates in February 2026? Whether you’re buying a business or expanding an existing one, understanding SBA 7(a) loan rates is critical to making a smart financial decision. Here’s what you need to know about SBA 7(a) loan rates in February 2026:
As of February 2026, SBA 7(a) loan interest rates range from 6.75% to 9.75% for most business acquisition loans, depending on your loan size, lender, and qualifications. These rates are based on the current Wall Street Journal Prime Rate of 6.75% (or the SBA Optional Peg Rate, also currently 6.75%), plus a spread that the SBA caps based on loan amount.
Here’s the current rate breakdown per the official SBA guidelines:
- Loans greater than $350,000: 6.75% – 9.75% (Base Rate + up to 3.0%)
- Loans $250,001 – $350,000: 6.75% – 11.25% (Base Rate + up to 4.5%)
- Loans $50,001 – $250,000: 6.75% – 12.75% (Base Rate + up to 6.0%)
- Loans $50,000 or less: 6.75% – 13.25% (Base Rate + up to 6.5%)
Most business acquisition loans exceed $350,000, meaning your maximum rate is capped at 9.75% — and many qualified borrowers negotiate rates well below that cap.
How SBA 7(a) Interest Rate Caps Work (February 2026)
One of the biggest advantages of SBA loans is that the government caps the maximum interest rate a lender can charge. Unlike conventional loans where banks set rates based on whatever the market will bear, SBA lenders cannot exceed these federally mandated spreads above the Prime Rate. Understanding how these caps determine current SBA 7(a) loan rates is essential for any borrower.
The caps are tied to the Wall Street Journal Prime Rate, which is the benchmark rate published daily by the WSJ based on a survey of the largest U.S. banks. When the Federal Reserve raises or lowers the federal funds rate, the Prime Rate typically moves in lockstep.
SBA 7(a) Maximum Interest Rate Spreads
- Loans greater than $350,000: Base Rate + 3.0% maximum
- Loans $250,001 – $350,000: Base Rate + 4.5% maximum
- Loans $50,001 – $250,000: Base Rate + 6.0% maximum
- Loans $50,000 or less: Base Rate + 6.5% maximum
This cap system protects borrowers from predatory pricing. No matter which SBA lender you work with, they legally cannot charge you more than these spreads. However — and this is important — not every lender charges the maximum. Some lenders price at Prime + 1.75% or Prime + 2.25% for well-qualified borrowers, which is why shopping your loan across multiple lenders matters enormously.
Average SBA 7(a) Loan Rates by Loan Purpose (February 2026)
Based on data from over 88,000 SBA 7(a) loans approved in FY2025-2026, here are the actual average rates borrowers are paying right now — broken down by loan purpose:
| Loan Purpose | Avg Rate | Median Rate | Avg Loan Size | # of Loans |
|---|---|---|---|---|
| Commercial Real Estate | 8.87% | 9.00% | $1,366,748 | 13,351 |
| Business Acquisition | 9.31% | 9.50% | $1,175,340 | 8,678 |
| New Business (Under 2 Years) | 10.29% | 10.25% | $418,812 | 13,373 |
| Working Capital / Existing Business | 10.53% | 10.50% | $369,129 | 53,253 |
Data source: SBA 7(a) loan approvals FY2025-2026. Click each category for a detailed breakdown of rates, what lenders look for, and how to get the best deal.
Average SBA 7(a) Interest Rates by Loan Type (2025-2026 Data)
While the SBA sets maximum rate caps, what borrowers actually pay varies significantly by loan purpose. Using data from over 88,000 SBA 7(a) loans approved in FY2025-2026, here are the real average rates borrowers are paying:
Average SBA Rates for Business Acquisitions (Change of Ownership)
If you’re buying an existing business, the average SBA 7(a) interest rate is 9.31% with a median of 9.50%. Rates range from 2.00% to 14.00%. The average acquisition loan size is $1,175,340, which puts most deals in the lowest rate cap tier (Base Rate + 3.0% max for loans over $350K).
- Average rate: 9.31%
- Median rate: 9.50%
- Average loan size: $1,175,340
- Based on: 8,678 acquisition loans (FY2025-2026)
Business acquisition loans tend to have better rates than average because they’re typically larger (qualifying for the tightest caps) and involve established businesses with proven cash flow.
Average SBA Rates for Real Estate (Terms Above 120 Months)
SBA 7(a) loans used for commercial real estate — identified by loan terms exceeding 120 months (10 years) — carry an average rate of 8.87% with a median of 9.00%. These are the most favorable rates in the 7(a) program.
- Average rate: 8.87%
- Median rate: 9.00%
- Average loan size: $1,366,748
- Based on: 13,351 real estate loans (FY2025-2026)
Real estate loans tend to have the lowest rates because they carry longer terms (up to 25 years), larger loan amounts (lower rate caps), and are backed by physical property as collateral. If you’re purchasing commercial real estate, also consider the SBA 504 loan program, which offers a fixed-rate component on 40% of the project.
Average SBA Rates for Startups
Startup businesses — those that don’t yet have operating history — see an average SBA 7(a) rate of 9.70% with a median of 10.00%.
- Average rate: 9.70%
- Median rate: 10.00%
- Average loan size: $540,975
- Based on: 13,008 startup loans (FY2025-2026)
Startups pay slightly higher rates due to the increased risk associated with unproven businesses. However, SBA rate caps still protect startup borrowers from excessive pricing — a major advantage compared to conventional lenders who rarely finance startups at all.
Average SBA Rates for Existing Businesses
Existing businesses (operating for more than 2 years) seeking expansion, working capital, or refinancing carry an average rate of 10.53% with a median of 10.50%.
- Average rate: 10.53%
- Median rate: 10.50%
- Average loan size: $369,129
- Based on: 53,253 existing business loans (FY2025-2026)
The higher average rate for existing businesses may seem counterintuitive, but it’s because this category includes a large volume of smaller loans (average $369K) which fall into higher rate cap tiers. Many of these are working capital and SBA Express loans, which carry higher spreads than the acquisition and real estate loans that tend to be larger.
Average SBA Rates for New Businesses (Under 2 Years)
Businesses that are less than 2 years old see an average rate of 10.29% with a median of 10.25%.
- Average rate: 10.29%
- Median rate: 10.25%
- Average loan size: $418,812
- Based on: 13,373 new business loans (FY2025-2026)
Key Takeaway: Rate Depends on Your Loan Purpose and Size
The data is clear: larger loans for acquisitions and real estate consistently get the best rates, while smaller working capital and expansion loans for existing businesses tend to pay more — primarily because of the wider rate caps on smaller loan amounts. If you’re buying a business or commercial property, you’re in the most favorable rate category.
Variable vs. Fixed Interest Rates on SBA Loans
Most SBA 7(a) loans carry variable interest rates, which directly affects current SBA 7(a) interest rates as the Prime Rate changes. This means your rate adjusts as the Prime Rate changes — typically on a quarterly basis. If the Fed cuts rates, your payment goes down. If rates rise, your payment increases.
Here’s what that means practically:
- SBA 7(a) loans: Almost always variable rate, tied to WSJ Prime
- SBA 504 loans: Include a fixed-rate component (the CDC/SBA portion), making them attractive for commercial real estate purchases
Variable rates aren’t necessarily a bad thing. With a 25-year SBA loan term, you’ll likely see multiple rate cycles. Many borrowers who took SBA loans at higher rates in 2023-2024 have already seen their rates decrease as the Fed has cut rates. The key is that SBA rate caps protect you from extreme spikes — your spread above Prime is locked in for the life of the loan.
SBA Loan Rates vs. Conventional Business Loan Rates
When you compare SBA 7(a) interest rates to conventional business financing, SBA loans win on almost every metric:
- SBA 7(a) rates (over $350K): 6.75% – 9.75% (with government-mandated caps)
- Conventional bank loans: 8% – 13%+ (no caps, bank discretion)
- Online business loans: 15% – 45%+ (often predatory)
- Merchant cash advances: Effective APRs of 40% – 150%+
Beyond the interest rate itself, SBA loans offer structural advantages that dramatically reduce your total cost of borrowing:
- Longer repayment terms: Up to 25 years (vs. 5-10 years conventional), which means lower monthly payments
- Lower down payments: As low as 10% for business acquisitions (vs. 20-30% conventional)
- No balloon payments: Fully amortizing loans with predictable payment schedules
- No prepayment penalties after the first 3 years on most 7(a) loans
When you factor in the longer terms and lower down payment requirements, an SBA loan at 9.75% often results in lower monthly payments than a conventional loan at 9% — because you’re spreading the payments over a much longer period.
What Determines YOUR SBA Loan Interest Rate?
Within the SBA’s rate cap framework, your specific rate depends on several factors:
1. Loan Size
As outlined above, larger loans have tighter caps. If you’re borrowing over $350,000 (which covers most business acquisitions), your maximum spread is 3.0% above the base rate.
2. Your Credit Score
Borrowers with credit scores above 700 typically receive more favorable spreads. Scores above 720-740 often qualify for rates closer to Prime + 1.75% to Prime + 2.25%. Lower credit scores (650-680 minimum for most lenders) will generally see rates closer to the cap.
3. Business Cash Flow & Financials
Lenders look at the debt service coverage ratio (DSCR) of the business you’re buying or expanding. Stronger cash flow = lower risk = better rates. A DSCR of 1.25x or higher typically gets you preferred pricing.
4. Industry & Experience
Some industries are considered higher risk (restaurants, startups, etc.), which may push your rate toward the cap. Relevant industry experience in the business you’re acquiring can help offset this.
5. Down Payment
While 10% down is the SBA minimum for acquisitions, putting more money down (15-20%) reduces the lender’s risk and can help you negotiate a lower spread.
6. The Lender You Choose
This is the factor most borrowers overlook — and it’s often the most impactful. Different SBA lenders price loans differently. One bank might offer Prime + 2.50% for your exact profile while another offers Prime + 2.00%. That 0.75% difference on a $500,000 loan saves you over $28,000 over the life of the loan.
How to Get the Best SBA Loan Interest Rate
Getting the lowest possible SBA 7(a) interest rate comes down to preparation and strategy:
Strengthen Your Application
- Boost your credit score before applying — pay down credit cards, dispute errors, avoid new inquiries
- Prepare a professional business plan with detailed financial projections
- Show strong cash flow in the business you’re acquiring — lenders love predictability
- Demonstrate relevant experience in the industry
- Consider a larger down payment if you can afford it
Shop Multiple Lenders
This is the single most important step most borrowers skip. Because SBA lenders have discretion to price anywhere from Prime to the maximum cap, the same borrower can receive dramatically different rate quotes from different lenders.
But here’s the challenge: shopping 10, 20, or 50 lenders on your own is incredibly time-consuming. Each lender has different documentation requirements, different timelines, and different appetites for various loan types. That’s where working with a broker who has established relationships across dozens of lenders becomes invaluable.
Historical SBA 7(a) Interest Rates (2010–2026)
Understanding where rates have been helps you evaluate whether today’s SBA 7(a) loan rates are historically high, low, or average. Here’s a look at average SBA 7(a) interest rates by fiscal year, based on actual FOIA data from 903,617 approved loans:
Key Takeaways from the Historical Data
- All-time low: FY2021 at 5.50% — pandemic-era Fed rate cuts drove SBA rates to historic lows
- Recent peak: FY2024 at 11.13% — the sharpest rate increase in SBA lending history, driven by aggressive Fed hikes
- Current trend: Rates are declining — FY2025 averaged 10.32% and FY2026 (so far) is at 9.79%, reflecting the Fed’s rate cut cycle
- Pre-pandemic normal: ~6-7% — rates hovered between 6% and 8% from 2010-2019
- The COVID effect: FY2020-2021 saw dramatic drops, followed by the steepest climb in SBA history through FY2023-2024
| Fiscal Year | Avg Rate | # Loans | Avg Loan Size |
|---|---|---|---|
| FY2010 | 6.42% | 47,000 | $263,958 |
| FY2011 | 6.27% | 53,710 | $365,673 |
| FY2012 | 6.22% | 44,376 | $341,480 |
| FY2013 | 6.11% | 46,395 | $385,078 |
| FY2014 | 6.03% | 52,044 | $368,737 |
| FY2015 | 6.11% | 63,461 | $371,628 |
| FY2016 | 6.29% | 64,072 | $376,580 |
| FY2017 | 6.62% | 62,427 | $407,633 |
| FY2018 | 7.27% | 60,352 | $420,408 |
| FY2019 | 7.89% | 51,906 | $446,496 |
| FY2020 | 6.46% | 42,285 | $533,210 |
| FY2021 | 5.5% | 51,821 | $704,907 |
| FY2022 | 6.43% | 47,640 | $538,751 |
| FY2023 | 10.13% | 57,362 | $479,685 |
| FY2024 | 11.13% | 70,241 | $443,096 |
| FY2025 | 10.32% | 78,072 | $477,557 |
| FY2026 | 9.79% | 10,351 | $506,113 |
Data source: SBA 7(a) FOIA loan approvals, FY2010–FY2026 (as of December 31, 2025). FY2026 is partial (Q1 only: October–December 2025).
What This Means for Borrowers in 2026
If you’re looking at current SBA 7(a) loan rates in February 2026, the good news is that rates are trending down from the FY2024 peak. With the Fed signaling potential further cuts, borrowers who lock in rates now could benefit from even lower rates in the coming months — especially on variable-rate loans that adjust with Prime.
At GoSBA, we monitor rate movements across our 50+ lender network daily and can help you time your loan for the best possible rate. Schedule a free consultation to see what rate you qualify for today.
SBA 7(a) Loan Interest Rates by Industry (Top 30)
Not all industries pay the same SBA loan rate. Lenders assess risk differently based on industry — and that affects what rate you’ll get. Here are the actual average SBA 7(a) interest rates for the top 30 industries by loan volume in FY2025–2026:
| Industry | Avg Rate | # Loans | Avg Loan Size | Total Funded |
|---|---|---|---|---|
| Full-Service Restaurants | 10.06% | 4,079 | $503,477 | $2,053.7M |
| Limited-Service Restaurants | 9.91% | 2,922 | $476,870 | $1,393.4M |
| Residential Remodelers | 10.86% | 1,995 | $211,200 | $421.3M |
| Fitness and Recreational Sports Centers | 10.03% | 1,861 | $411,749 | $766.3M |
| Plumbing, Heating, and Air-Conditioning Contractors | 10.2% | 1,596 | $447,118 | $713.6M |
| All Other Specialty Trade Contractors | 10.12% | 1,428 | $484,978 | $692.5M |
| Snack and Nonalcoholic Beverage Bars | 9.93% | 1,400 | $412,963 | $578.1M |
| General Automotive Repair | 10.2% | 1,398 | $458,436 | $640.9M |
| Landscaping Services | 10.21% | 1,337 | $304,419 | $407.0M |
| Beauty Salons | 10.7% | 1,337 | $189,390 | $253.2M |
| Child Day Care Services | 9.78% | 1,313 | $736,043 | $966.4M |
| Electrical Contractors | 10.42% | 1,125 | $386,897 | $435.3M |
| General Freight Trucking, Long Distance, Truckload | 10.46% | 1,099 | $217,864 | $239.4M |
| Other Personal Care Services | 10.24% | 1,020 | $397,286 | $405.2M |
| Offices of Physicians (except Mental Health Specialists) | 9.95% | 984 | $531,776 | $523.3M |
| Insurance Agencies and Brokerages | 10.29% | 961 | $403,876 | $388.1M |
| Home Health Care Services | 10.35% | 952 | $448,353 | $426.8M |
| General Freight Trucking, Local | 10.42% | 928 | $292,088 | $271.1M |
| Offices of Dentists | 9.18% | 925 | $904,880 | $837.0M |
| Administrative Management and General Management Consulting Services | 11.23% | 886 | $240,765 | $213.3M |
| Hotels (except Casino Hotels) and Motels | 8.97% | 881 | $2,673,643 | $2,355.5M |
| Janitorial Services | 10.58% | 875 | $232,711 | $203.6M |
| All Other Professional, Scientific, and Technical Services | 10.46% | 843 | $443,319 | $373.7M |
| All Other Personal Services | 10.66% | 827 | $324,479 | $268.3M |
| New Single-Family Housing Construction (except Operative Builders) | 11.0% | 789 | $322,868 | $254.7M |
| Pet Care (except Veterinary) Services | 10.04% | 775 | $477,295 | $369.9M |
| Offices of All Other Miscellaneous Health Practitioners | 10.36% | 769 | $341,047 | $262.3M |
| All Other Amusement and Recreation Industries | 10.0% | 763 | $650,342 | $496.2M |
| Offices of Lawyers | 10.39% | 710 | $328,479 | $233.2M |
| Offices of Chiropractors | 10.07% | 707 | $277,055 | $195.9M |
Data source: SBA 7(a) FOIA loan approvals, FY2025–FY2026 (88,423 loans with reported industry codes).
Industries With the Lowest SBA Rates
Three industries stand out with significantly lower average rates:
- Hotels & Motels: 8.97% — Large loan sizes ($2.67M avg) mean borrowers hit the tightest rate cap (Prime + 3.0% max for loans over $350K). Hotel deals also tend to have strong collateral.
- Dentist Offices: 9.18% — Dental practices are considered low-risk by SBA lenders, with high revenue predictability and strong collateral (equipment). Average loan of $904K.
- Child Day Care: 9.78% — Government-subsidized revenue streams and essential-service status make day care centers attractive to lenders.
Industries With Higher SBA Rates
Some industries face higher average rates — typically because loan sizes are smaller (hitting wider rate caps) or perceived risk is higher:
- Management Consulting: 11.23% — Smaller loan sizes and service-based businesses with limited collateral drive rates up.
- New Home Construction: 11.00% — Cyclical industry with higher perceived risk.
- Residential Remodelers: 10.86% — Smaller loans averaging $211K hit the wider SBA rate caps.
How GoSBA Gets You the Best Rate for Your Industry
Your industry matters — but so does which lender you work with. Some lenders specialize in restaurants, others in medical practices, and others in hospitality. At GoSBA, our 50+ lender network includes specialists for every industry on this list. We match you with the lender most likely to give you the best rate for your specific business type. Get a free rate quote →
How GoSBA Helps You Lock In the Lowest SBA 7(a) Loan Rates
At GoSBA Loans, we’ve built a network of 50+ SBA lenders specifically so our clients don’t have to settle for the first rate they’re offered. When you work with us, we shop your deal across our entire lender network to find the best combination of rate, terms, and speed for your specific situation.
Here’s what that looks like in practice:
- 50+ lender relationships: We know which lenders offer the most competitive rates for different loan sizes, industries, and borrower profiles
- $320M+ funded in 2025: Our volume gives us leverage to negotiate preferred pricing that individual borrowers can’t access
- Free business plan & financial projections: We prepare professional-grade business plans and projections for every client — a $2,500 to $5,000 value — included at no cost. A strong business plan directly impacts the rate you’re offered.
- 100% free service: We’re compensated by the lender, never the borrower. Our service costs you nothing.
The difference between a good rate and a great rate might seem small on paper, but over a 10 or 25-year SBA loan, even a quarter-point difference adds up to thousands of dollars in savings.
SBA 7(a) Loan Rate Outlook — February 2026 and Beyond
With the Federal Reserve holding rates steady at its January 2026 meeting, current SBA 7(a) loan interest rates in February 2026 remain stable — but may shift in the coming months as the Fed considers further adjustments. The current Prime Rate of 6.75% reflects the Fed’s recent monetary policy decisions, and any future rate cuts would directly lower SBA 7(a) variable rates.
If you’re considering an SBA loan, the current rate environment still represents historically reasonable borrowing costs — especially when combined with the SBA’s generous terms and rate caps. Waiting for “perfect” rates means potentially missing out on the right business opportunity.
Ready to See Your SBA 7(a) Interest Rate?
Now that you know current SBA 7(a) loan rates for February 2026, the fastest way to find out your specific rate is to get pre-qualified. At GoSBA Loans, we’ll review your profile, match you with the best-fit lenders from our 50+ lender network, and help you secure the most competitive rate available.
It takes 5 minutes to get started — and it’s completely free.
Get Your Free SBA Rate Quote →
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