Does a slightly larger SBA loan have a lower maximum interest rate?
Short answer
Yes. The cap steps down at three loan amounts: above $50,000, above $250,000 and above $350,000. The lower cap applies to the whole loan, under 13 CFR § 120.214(d).
SBA sets the cap by total loan amount, so one extra dollar can move a loan into a lower tier (13 CFR § 120.214(d)).
- Crossing $50,000: from Prime plus 6.5 percentage points to Prime plus 6.0 percentage points
- Crossing $250,000: from Prime plus 6.0 percentage points to Prime plus 4.5 percentage points
- Crossing $350,000: from Prime plus 4.5 percentage points to Prime plus 3.0 percentage points
The largest step is 1.5 percentage points. At the cap, a $350,001 loan starts with about $5,250 less annual interest than a $350,000 loan. That is 1.5% of the balance before principal payments reduce it.
This compares ceilings, not quotes
A lender can price below any cap, so the step matters most when a quote sits near the cap. Pricing varies by lender.
Other lines change at nearby amounts
Check these before changing a loan amount:
- $150,000: the 7(a) guaranty is 85% on loans of $150,000 or less and 75% on larger loans (Appendix 16, Para. A.1). The FY2027 upfront fee also moves from 2% to 3% of the guaranteed portion.
- $350,000: most larger 7(a) loans are Standard 7(a) loans, with different underwriting (Section B, Chapter 1). SBA Express can reach $500,000.
- $700,000: the FY2027 upfront fee waiver ends (SBA Information Notice 5000-881797).
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