What interest rate can an SBA microloan charge?

Microloan rates are capped by formula, not by one published number. 13 CFR § 120.707(c) sets the maximum:

• the intermediary's SBA loan rate plus 7.75 percentage points on loans over $10,000, or plus 8.5 percentage points on loans of $10,000 or less.

What the intermediary's SBA rate is

SBA charges an intermediary the five-year Treasury rate, adjusted to the nearest one-eighth percent, less 1.25 percent. A Specialized Intermediary pays the Treasury rate less 2 percent instead (13 CFR § 120.706(c)). A Specialized Intermediary keeps a portfolio averaging $10,000 or less (13 CFR § 120.705).

So the cap moves with Treasury yields, and it differs between intermediaries.

What you will actually pay

A microloan carries a fixed rate (13 CFR § 120.701). SBA says rates vary depending on the intermediary (sba.gov/loans/microloans, read November 8, 2026). We do not print a figure here because it moves with the Treasury rate. Ask the intermediary for your exact rate.

Fees

13 CFR § 120.706(f) covers SBA's charges to intermediaries. It does not list fees an intermediary may charge you, so ask for them in writing.

Compared with 7(a)

A 7(a) variable rate is capped at Prime plus 3.0 to 6.5 percentage points, depending on loan size (13 CFR § 120.214(d)). That cap uses a different base, so the two programs are not directly comparable without today's rates.