SBA Loan Rates and Fees — How the Number Is Built

How 7(a) pricing is capped, and which fees are legitimate.

Every page that promises you a specific SBA rate is either quoting a number that was true on the morning it was written, or quietly showing you its best-case teaser. Here is how the number is genuinely constructed, so you can price your own quote.

7(a): a capped, lender-set rate

On 7(a), the lender sets your rate — but not freely. SBA publishes maximum allowable rates, built as a base rate plus a maximum spread. The base rate is a published index such as the prime rate. The permitted spread varies with loan size and term, with smaller loans allowed a wider spread because the work of underwriting a $75,000 loan is not much less than a $750,000 one.

Two practical consequences. Your rate moves with the base rate unless you negotiate a fixed rate, so a variable 7(a) payment changes when prime changes — SBA notes plainly that on variable-rate loans the lender may require a different payment amount when the rate changes. And because the cap is a cap and not a price, two SBA lenders can quote the same borrower differently. Shopping is worth real money here.

The SBA guarantee fee

SBA charges the lender a guarantee fee for standing behind part of the loan, and it is typically passed to the borrower and financed into the loan. It scales with the guaranteed amount, so it is a bigger line item on a $2m loan than on a $200,000 one. Ask for it as a dollar figure, not a percentage, and ask whether it is financed or due at closing.

504: two rates, one project

A 504 project carries the senior lender's commercial rate on roughly half the money and the CDC debenture's long-term fixed rate on roughly 40%. Blend them to compare against a 7(a) quote, and remember the debenture portion is fixed for 20 or 25 years — worth more than a few basis points if you intend to hold the building.

Microloans, for scale

SBA publishes the microloan picture openly: loans up to $50,000, average around $13,000, maximum term seven years, and interest rates that vary by intermediary but generally run 8% to 13%. Useful as a floor-level reference point when someone tells you 19% is "the market" for a small business.

Fees to question

Legitimate: the SBA guarantee fee, third-party costs you would pay anyway (appraisal, title, environmental, filing), and a packaging fee that is disclosed and within SBA's permitted limits. Not legitimate: an upfront fee charged to you for the privilege of being submitted. We are paid by the lender on a funded transaction. If anyone in this industry asks a small business owner for money before funding, stop and check.

SBA program rules on this page were read from sba.gov on 1 September 2026 (7(a), 504 and microloan program pages). Program terms are set by the SBA and can change; lender pricing and credit policy are set by each lender. Program guidelines shown are our lending partners' published minimums as of September 2026 and can change. They are qualification floors, not an offer. General information about commercial finance products, not financial, legal or tax advice for your situation.