Do state usury laws limit the interest rate on an SBA 7(a) loan?
Short answer
No. SOP 50 10 8.1, Appendix 18, Para. A.1 says SBA's regulations govern the maximum rate on any 7(a) loan and preempt state constitutions and laws. Your limit is the SBA maximum for your loan size.
SBA's rate rules override state limits on the maximum interest rate. SOP 50 10 8.1, Appendix 18, Para. A.1 (p. 395) says SBA's interest rate regulations govern the maximum for any 7(a) loan. It says those regulations preempt any provision of a state's constitution or law.
The limit that applies instead
The regulations are 13 CFR § 120.213 for fixed rates and 13 CFR § 120.214 for variable rates. The variable cap is Prime plus 3.0 to 6.5 percentage points, depending on loan size.
The lender can still negotiate a lower rate with you. The SBA maximum is a ceiling, not a set price.
What the passage does not cover
The preemption language speaks to the maximum interest rate. It does not address state lender licensing or other state lending laws. SBA also tells lenders to include any necessary state-specific language in the loan documents (Section B, Chapter 6, Para. D.2, about p. 208).
If your deal raises a state-law question beyond the rate, ask the lender's counsel or your own attorney. Those answers depend on the state and the lender.
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