# 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).

Canonical page: https://www.sbaexpress.loans/answers/sba-rate-cap-by-loan-size-boundary/
Last checked: 2026-11-09

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).

## Sources

- [13 CFR § 120.214(d), Maximum Allowable Variable Interest Rates](https://www.ecfr.gov/current/title-13/section-120.214)
- [SOP 50 10 8.1, App. 18, Para. A.2, Allowable Spread (Para. A begins p. 395)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, App. 16, Para. A.1 (p. 387)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SBA Information Notice 5000-881797, FY2027 7(a) fees, pp. 1-2](https://legacy.sba.gov/document/information-notice-5000-881797-fy-2027-7a-program-fees)