Can I negotiate the interest rate on an SBA loan?
Short answer
Yes. SOP 50 10 8.1, Appendix 18, Para. A.1 says the lender negotiates the rate with you, subject to SBA's maximums. SBA sets the ceiling. The lender sets the price, so quotes can differ.
In this answer, SOFR means Secured Overnight Financing Rate.
SBA does not set your rate. The lender negotiates it with you, and it cannot exceed SBA's maximum (SOP 50 10 8.1, Appendix 18, Para. A.1, p. 395). The variable maximum is Prime plus 3.0 to 6.5 percentage points, depending on loan size.
Terms you can compare between lenders
- Spread. This is the margin over the base rate. SBA limits it, and a lender can offer less.
- Base rate. The main options are the Prime rate or the SBA Optional Peg Rate. Since March 2026 a lender may also use SOFR, the 5-year Treasury Note rate or the 10-year Treasury Note rate.
- Fixed or variable. SBA allows both, but a lender does not have to offer both.
- Adjustment schedule. Your Note states it. Rates can change no more often than monthly.
- Ceiling and floor. These are optional and must be stated in the Note.
- Fees. A lower rate with a higher packaging fee can cost more. The lender must itemize its fees in writing (Section A, Chapter 4, Para. C.2.a).
What is not published
The SOP does not tell lenders how to price a loan below the cap. Each lender uses its own approach, so rates vary by lender and by deal.
After you sign
The spread in your Note cannot change during the loan without your written agreement (Appendix 18, Para. A.1).
Sources
- SOP 50 10 8.1, App. 18, Para. A.1, General Policy on Interest Rates (p. 395)
- SOP 50 10 8.1, Sec. A, Ch. 4, Para. C.2.a, Packaging Fees (about p. 67)
- sba.gov/sba-lenders, Interest rates (read November 8, 2026)
- SBA Procedural Notice 5000-875051, p. 1 (effective March 1, 2026); SOP 50 10 8.1, App. 18, Para. A (p. 395)
- 13 CFR ยง 120.214(a)
Ask lending partners about your loan
Tell us the amount you need and what it is for. We refer you to lenders that may fund businesses like yours, and it costs you nothing.
Janover Capital LLC is not a lender and is not the SBA. The lender makes the credit decision. A lender or marketplace may pay us a referral fee if we connect you, at no cost to you. Advertiser disclosure.