What Are the Current Interest Rates for SBA Loans?
Published Aug 26, 2022 · Updated Aug 1, 2026 · by Content Team
SBA Express loan rates are capped by loan size at the base rate, usually WSJ Prime, plus 3.0% to 6.5%. 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.
Calculate Your Estimated Monthly Payments
Navigating through the complex landscape of SBA loan interest rates can be challenging, but having a handy calculator can make the process a whole lot simpler. Our SBA Express payment calculator estimates the monthly payment for any loan amount, rate and term.
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.
The spreads below are added to that base rate; check the current Prime rate at wsj.com or federalreserve.gov.
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.
Maximum SBA 7(a) and SBA Express interest rates
Loan amount
Maximum rate
$50,000 and under
Base rate + 6.5%
$50,001 to $250,000
Base rate + 6.0%
$250,001 to $350,000
Base rate + 4.5%
$350,001 to $500,000
Base rate + 3.0%
Loan term no longer changes the ceiling, and SBA Express stops at $500,000, so the last row is the largest Express loan. These are maximums rather than quotes; lenders price underneath the cap.
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 were administered by community lenders, typically non-profits, and were specifically intended to provide funds for traditionally underserved populations. SBA has since discontinued the Community Advantage pilot program. While the program operated, Community Advantage loan interest rates usually varied between 7% and 9%, though this could depend heavily on the lender. In some cases, riskier Community Advantage loans had interest rates as high as 11%.
How Easy is the Application Process for SBA Loans?
Initial Requirements
Firstly, the requirements for SBA loans are more lenient compared to traditional bank loans, making it easier for small business owners to qualify. Businesses need to be based in the U.S., fall under an approved industry, and meet size standards, among other requirements.
Documentation Needed
The documentation required for SBA loans typically includes business and personal tax returns, business financial statements, and a business plan. You may also need to provide additional documents such as lease agreements, proof of collateral, and ownership and affiliation documents.
Online Platforms and Tools
Today's technology has simplified the loan application process. Many SBA-preferred lenders offer online platforms where you can submit all required documentation and even get pre-qualified. Some platforms, like Janover, match you with the best loan products, helping you compare rates and terms from multiple lenders at once.
Application Review Timeline
SBA Express loans offer a quick turnaround, with decisions often made within 36 hours. This is a major advantage for businesses in need of quick funding. Other SBA loan types may have a more extended review process but are still faster compared to many traditional financing options.
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?
SBA caps the rate on a 7(a) or SBA Express loan rather than setting it, and since 2022 the cap has depended on loan size alone. The maximum is the base rate, usually WSJ Prime, plus the spread below.
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.
An established operating history (SBA itself sets no minimum time in business).
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
Start here
Getting a small business loan should be easy. Now it is.
Tell us what your business needs. We route your inquiry to SBA lending partners. Free, no obligation.