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Small Business Blog
Last updated on Mar 1, 2023
4 min read

What Are the Current Interest Rates for SBA Loans? | Daily Updates

SBA Express loans are currently offered at interest rate of 4.5% to 6.5% above the prime rate. As of March 2023, the U.S. prime rate was 7.75%.

Better Financing Starts with More Options Start Your Application and Unlock the Power of Choice. Click Here to Get Quotes →$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1M offered by a Credit Union at 5.1%Click Here to Get Quotes
In this article:
  1. Current SBA Loan Rates: Compare Options
  2. How Do SBA Express Loan Interest Rates Compare to Other Kinds of SBA Loans?
  3. SBA 7(a) Loan Rates
  4. SBA 7(a) Loans With Terms of Less Than 7 Years
  5. SBA 7(a) Loans With Terms of 7 Years or More
  6. SBA Microloan Rates
  7. SBA Community Advantage Loan Rates
  8. SBA 504 Loan Rates
  9. What Are the Average Interest Rates for Non-SBA Loans?
  10. Related Questions
  11. Get Financing

SBA Express loans are currently offered at interest rate of 4.5% to 6.5% above the prime rate. While SBA Express loan interest rates can be fixed or variable rate, most lenders tend to offer variable-rate loans — especially for smaller loan amounts.

Current SBA Loan Rates: Compare Options

How Do SBA Express Loan Interest Rates Compare to Other Kinds of SBA Loans?

While SBA Express loans are a great option for businesses that need SBA funding fast, they’re not the only SBA loan option on the market. To see how the SBA Express loan stacks up against the competition, we’ll look at few of the most common SBA loan types to compare and contrast the interest rates.

First, we need to look at what the WSJ Prime rate is. SBA loans generally use this rate plus a spread to determine the interest rate of a loan. The spread differs depending on the type of loan and the length of the loan's term.

See the table below for the current WSJ Prime rate.

SBA 7(a) Loan Rates

Like many other kinds of SBA loans, SBA 7(a) loans can have either fixed or variable interest rates based on the WSJ Prime. The interest rate you will receive is tied not just to this index but also to the length of the loan term and the amount of money provided, as described in the table below.

SBA 7(a) Loans With Terms of Less Than 7 Years

Loan Amount

Interest Rate Spread

Less than $25,000

WSJ Prime + 4.25%

$25,000 to $50,000

WSJ Prime + 3.25%

More than $50,000

WSJ Prime + 2.25%

SBA 7(a) Loans With Terms of 7 Years or More

Loan Amount

Interest Rate Spread

Less than $25,000

WSJ Prime + 4.75%

$25,000 to $50,000

WSJ Prime + 3.75%

More than $50,000

WSJ Prime + 2.75%

SBA Microloan Rates

SBA Microloans can provide up to $50,000 to borrowers and have significantly more lenient credit requirements than many other types of SBA financing. These loans typically have interest rates of anywhere between 6.5% and 13%. Rates are generally limited to the cost of funds plus certain percentages, as represented in the table below.

Loan Amount

Interest Rate Spread

$10,000 or less

Cost of funds + 8.50%

More than $10,000

Cost of funds + 7.75%

According to the SBA, the average microloan in 2022 had a 7.9% interest rate.

SBA Community Advantage Loan Rates

SBA Community Advantage loans, which are administered by community lenders, typically non-profits, are specifically intended to provide funds for traditionally underserved populations. Community Advantage loan interest rates usually vary between 7% and 9%, though this can depend heavily on the lender. In some cases, riskier Community Advantage loans may have interest rates as high as 11%.

SBA 504 Loan Rates

SBA 504 loans have some of the lowest interest rates of any type of SBA financing. Rates are calculated like so:

  • 10-Year Loans 5-year Treasury rate + 1.5% - 3.5% in fees + 0.38% Fixed Fee

  • 20-Year Loans: 10-year Treasury rate + 1.5% - 3.5% in fees + 0.48% Fixed Fee

However, it’s essential to keep in mind that these loans cannot be used for equipment or working capital, and can only be used for the construction or acquisition of owner-occupied commercial real estate.

What Are the Average Interest Rates for Non-SBA Loans?

Now that we’ve compared SBA Express loan interest rates to other kinds of SBA loans, let’s take a moment to compare them to forms of non-SBA financing.

First, let’s look at bank loans. Bank loans broadly have better average interest rates, and so small business financing from a bank or credit union might seem like a better alternative to SBA financing. However, there’s a big catch — banks often have incredibly strict credit and financial requirements. Unless your business has lots of money in the bank and near-perfect credit, it may not get approved.

If you can’t get a bank loan, and an SBA loan isn’t your thing, you may want to turn to an online or alternative lender offering non-SBA loans. Many alternative lenders offer small business loans with rates starting around the upper limit of SBA loans. That said, you need to be careful, since some lenders may be offering short-term loans with interest rates as high as 70% or even 90%.

Related Questions

What are the current interest rates for SBA loans?

The current interest rates for SBA loans depend on the loan amount and the loan term. For SBA 7(a) loans with terms of less than 7 years, the interest rate spread is as follows:

Loan Amount Interest Rate Spread
Less than $25,000 WSJ Prime + 4.25%
$25,000 to $50,000 WSJ Prime + 3.25%
More than $50,000 WSJ Prime + 2.25%

For SBA 7(a) loans with terms of 7 years or more, the interest rate spread is as follows:

Loan Amount Interest Rate Spread
Less than $25,000 WSJ Prime + 4.75%
$25,000 to $50,000 WSJ Prime + 3.75%
More than $50,000 WSJ Prime + 2.75%

For more information, please visit www.sbaexpress.loans/blog/sba-express-loan-interest-rates.

What are the eligibility requirements for SBA loans?

The eligibility requirements for SBA loans include:

  • Being in an approved industry (i.e. no gambling, lending, real estate investment, or speculation-based businesses allowed)
  • Being a for-profit company based in the U.S.

In addition to the eligibility requirements, there are a few additional qualities which can increase your likelihood of SBA 7(a) loan approval:

  • A good credit score - preferably above 680.
  • A history free from recent bankruptcies, foreclosures, or tax liens.
  • Having been in business for at least two years.
  • The ability to provide collateral for loan requests over $25,000.
  • The ability to make a down payment of 10% if your intended use of funds is to purchase a business, commercial real estate, or business-related equipment.
  • Sufficient cash flow to meet your debt obligations.
  • Sufficient working capital (once you subtract liabilities from assets).
  • “Good character” according to the SBA (partially decided based on your track record of managing your resources and day-to-day business affairs).

For existing businesses over 2 years old, additional requirements include:

  • Business must have positive cash flow
  • Decent credit score (minimum of 575 for many lenders, though a score of 620-640 is preferred)
  • At least two years of experience in the industry
  • Sufficient collateral, or a co-signer with collateral and good credit

For start-ups, additional requirements include:

  • Owners must have at have put at least 25% of their own funds in the business
  • Good/decent credit
  • At least two years of industry experience
  • Sufficient collateral, or a co-signer with collateral and good credit and the ability to potentially repay the loan
  • Strong business plan, including financial projections and market analysis

What are the advantages of taking out an SBA loan?

The Small Business Administration (SBA) offers a variety of loan products that can help small business owners access the capital they need to start, build, and grow their businesses. The SBA Express loan is one of the most popular loan products, and it offers several advantages over other forms of financing.

The main advantage of an SBA Express loan is its fast turnaround time. After applying, you can expect to receive a decision within 36 hours. This is much faster than other forms of financing, which can take weeks or even months to process. Additionally, the SBA guarantee to third-party lenders ensures a higher approval rate, even for those who have been denied commercial loans in the past.

SBA loans are also great for business owners who may not qualify for more traditional business loans. Because the government will cover the loan if a borrower defaults, banks are more willing to offer these loan products to high-risk borrowers. You can also use them to address your biggest concerns as a small business owner, like cash flow problems, payroll, and commercial real estate expenses.

What types of businesses are eligible for SBA loans?

Businesses that have fewer than 500 employees are eligible for SBA 7(a) loans. According to SBA7a.loans, eligible businesses include:

  • Business Services and Office-Based Companies
  • Retail Stores
  • Restaurants and Food Services
  • Manufacturing
  • Wholesale Trade
  • Real Estate
  • Transportation
  • Construction
  • Agriculture
  • Hospitality
  • Health Care
  • Technology
  • Professional Services

SBA 7(a) loans can be used for anything from buying or leasing office space, to purchasing equipment, and even meeting payroll expenses.

What are the repayment terms for SBA loans?

The repayment terms for SBA loans depend on the type of loan. For SBA Express loans, the repayment terms are up to 25 years if the financing is for real estate, and five to 10 years for other types of loans, with seven-year maximums for lines of credit. Source

In this article:
  1. Current SBA Loan Rates: Compare Options
  2. How Do SBA Express Loan Interest Rates Compare to Other Kinds of SBA Loans?
  3. SBA 7(a) Loan Rates
  4. SBA 7(a) Loans With Terms of Less Than 7 Years
  5. SBA 7(a) Loans With Terms of 7 Years or More
  6. SBA Microloan Rates
  7. SBA Community Advantage Loan Rates
  8. SBA 504 Loan Rates
  9. What Are the Average Interest Rates for Non-SBA Loans?
  10. Related questions
  11. Get Financing
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