Current SBA Loan Rates for September 2022

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SBA loans are highly coveted because of the competitive interest rates and increased affordability for business owners. Despite the lengthy underwriting process, SBA loans continue to be one of the most popular financing solutions for entrepreneurs and business owners nationwide.


As of September 7th, 2022, the SBA loan rates are:

SBA 7(a) (variable rates) 7.75% to 10.25%
SBA 7(a) (fixed rates): 8.5% to 11.5%
SBA Express loan rates 10% to 12%
SBA CDC/504 loan rates 4.886% to 4.990%
SBA Economic Injury Disaster Loan (EIDL) rates 2.75% to 3.75%
SBA Microloan rates 6% to 9%

Prime Rate: 5.50%

LIBOR (One Month + 3%): 5.38%

SBA PEG Rate: 2.75%

How are SBA Loan Rates Set?

The interest rate you’ll pay on your SBA loan will depend on the program you’ve chosen, the amount you’re seeking to borrow, and the repayment terms you’ll return the borrowed amount within. It will also depend on the daily prime rate, which will fluctuate based on the actions of the Federal Reserve.

Your lender will offer a fixed or variable interest rate depending on your desired program. Fixed interest rates are static throughout the term of your loan, whereas variable interest rates will change based on the prime rate, the LIBOR rate, or the SBA Optional Peg Rate, which is “a weighted average of rates the federal government pays for loans with maturities similar to the average SBA loan,” according to the SBA.

While the maximum rate is set by external factors, your specific interest rate will be determined by your lender based on your business’s information. You can negotiate to reach a lower interest rate, but they can’t offer an interest rate higher than the maximum set by the SBA.

 

SBA 7(A) Loan Rates

The SBA 7(A) program is the most popular of the bunch. With a maximum borrowing amount of $5 million and repayment terms ranging from 10 to 25 years, this financing option is used by business owners for various reasons, including asset purchases, working capital management, and business expansion. 

Here are the current SBA 7(A) variable interest rates:

Loans w/ Repayment Terms Under 7 Years

Rate Standard

0 to $25,000 - Base + 4.25%

$25,001 to $50,000 - Base + 3.25%

Above $50,000 - Base + 2.25%

Loans w/ Repayment Terms Under 7 Years

Variable rate maximum (with current 3.5% prime rate)

0 to $25,000 - 9%

$25,001 to $50,000 - 8%

Above $50,000 - 7%

Loans w/ Repayment Terms Above 7 Years

Rate Standard

0 to $25,000 - Base + 4.75%

$25,001 to $50,000 - Base + 3.75%

Above $50,000 - Base + 2.75%

Loans w/ Repayment Terms Above 7 Years

Variable rate maximum (with current 3.5% prime rate)

0 to $25,000 - 9.5%

$25,001 to $50,000 - 8.5%

Above $50,000 - 7.5%

Here are the current SBA 7(A) fixed interest rates:

Loan Amount Maximum Rate Maximum Rate Allowed (w/ Current 3.5% Prime Rate)
0 to $25,000 Prime + 8% 12.75%
$25,001 to $50,000 Prime + 7% 11.75%
$50,001 to $250,000 Prime + 6% 10.75%
Above $250,000 Prime + 5% 9.75%

The current prime rate, as of September 7th, 2022, is 4.75%.

SBA Express Loan Rates

SBA Express loans are very similar to their 7(A) counterparts, but the funding is granted much faster, and the borrowing rate is considerably lower at $350,000. Interest rates are generally 4.5% to 6.5% above the prime rate because of the convenience and speed offered by this option, but they can’t exceed the maximum interest rate set by the SBA.

Loan Amount Maximum Rate Maximum Rate Allowed (w/ Current 3.5% Prime Rate)
$0 to $50,000 Prime + 6.5% 11.25%
$50,000 to $350,000 Prime + 4.5% 9.25%

SBA CDC/504 Loan Rates

CDC/504 SBA loans are made up of two subcategories: a bank loan and a CDC loan. The bank loan covers 50% of the total amount, and the CDC loan, granted by a non-profit certified development company, will cover 40%. A down payment from the borrower covers the remaining 10%.

This type of financing is used to purchase land, buildings, or expensive equipment for business growth. However, you can’t use a 504 loan for working capital purposes, inventory purchases, or other minor business activities, making them uniquely beneficial for those seeking to make a sizeable purchase.

Term Interest Rate
10-Year Term 4.962%
20-Year Term 4.886%
20-Year Term Refi 4.9%
25-Year Term 4.977%
25-Year Term Refi 4.990%

The interest rates for the CDC portion of this loan are always fixed, and stay the same throughout the lifetime of the loan. The bank loan, on the other hand, might have a variable interest rate or balloon payment, depending on the lender you’re dealing with.

SBA Economic Injury Disaster Loan (EIDL) Rates 

Otherwise known as SBA Disaster loans, EIDLs are sought by businesses after they’ve sustained serious economic loss due to a natural or economic disaster. You can only apply for this financing if the federal government has given a disaster declaration for your area, and you meet the following qualifications:

  • You’re a business, agricultural cooperative, or nonprofit
  • You’ve sustained a significant economic loss as a result of a disaster, and you’re unable to pay your usual operating expenses because of it
  • Your organization has less than 500 employees
  • You have a FICO score of at least 570 for loans less than $500,000, and a FICO score of 625 for loans over $500,000

Here are the current interest rates for SBA EIDLs:

Type of Business Interest Rate
Non-Profit 2.75%
For Profit 3.75%

SBA Microloan Rates

SBA microloans carry maximum borrow amounts of $50,000, with repayment terms generally between 1 to 6 years. The average interest rate for a SBA microloan is between 6% and 9%. Additionally, this option is usually secured by collateral or the asset the business is planning to purchase with the financing, but this will depend on your business needs and the lender you’re dealing with.

The current SBA microloan interest rates are:

Loan Amount Interest Rate
Under $10,000 Cost to Fund + 8.5%
More than $10,000 Cost to Fund + 7.75%

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