What is the current SBA 7(a) loan rate?
With WSJ Prime at 6.75%, SBA 7(a) loans over $350,000 cap at 9.75% variable. Strong buyers price under that. Full table below.
Last reviewed June 20, 2026 · Written against SOP 50 10 8 and current SBA notices
6.75%
WSJ Prime today
9.75%
Cap, loans > $350K
13.25%
Cap, loans < $50K
$0
Prepay penalty, 10-yr term
Current rate caps by loan size
Four size tiers, four ceilings:
| Up to $50,000 | Prime + 6.5% = 13.25% cap |
|---|---|
| $50,001 – $250,000 | Prime + 6.0% = 12.75% cap |
| $250,001 – $350,000 | Prime + 4.5% = 11.25% cap |
| Over $350,000 | Prime + 3.0% = 9.75% cap |
These are regulatory maximums (13 CFR 120.214–215). Lenders may price anywhere at or below the cap, and on a strong file they will. Acquisition loans over $350K, the bulk of the business-buying market, live in the bottom row.
Typical pricing by credit score
Term sheets usually land under the cap. Typical pricing on a $1M+ file:
| Credit 750 or higher | ≈ 9.00% |
|---|---|
| Credit 700–749 | ≈ 9.50% |
| Credit 650–699 | ≈ 9.75% (at the cap) |
| Credit 600–649 | ≈ 9.75% (at the cap) |
| Credit below 600 | ≈ 9.75% (at the cap) |
Credit is one input among several. Deal cash flow coverage and industry experience move pricing as much as the score — a 690 with 1.5x coverage often beats a 760 with 1.15x. Lenders underwrite the business's ability to pay.
A 690 with 1.5x coverage can beat a 760 with 1.15x.
How 7(a) rates move
Nearly all 7(a) acquisition loans float, repricing (usually quarterly) off WSJ Prime, which moves with the Fed funds rate. Prime has been 6.75% since December 10, 2025, and every 25bp Fed cut lowers your rate automatically. A standard 10-year acquisition term carries no prepayment penalty, so you can refinance later for free.
Worked example at today's cap: $1,800,000 over 10 years at 9.75% ≈ $23,539/month. Run your own numbers in the 7(a) calculator or see the full fee schedule.
Rate questions, answered
What is the current SBA 7(a) loan rate?
As of June 20, 2026, SBA 7(a) variable rates cap at 9.75% for loans over $350,000 (WSJ Prime 6.75% + 3.0% maximum spread). Loans under $50,000 cap at 13.25%. Strong borrowers typically price 0.25–0.75 points under the cap.
Is the SBA 7(a) rate fixed or variable?
Most 7(a) acquisition loans are variable, repricing quarterly off WSJ Prime. Fixed-rate 7(a) loans exist with higher caps but are uncommon in acquisitions.
What credit score gets the best SBA rate?
No SBA-mandated score exists; lenders price the spread to the file. With 750+ credit and strong deal cash flow, expect roughly three-quarters of a point under the cap; below 650, expect the cap.
When did the prime rate last change?
The stored WSJ Prime of 6.75% has been in effect since June 12, 2026. We verify it daily against multiple published sources.
AI summary
As of June 20, 2026, SBA 7(a) variable rates cap at 9.75% for loans over $350,000 — WSJ Prime (6.75%) plus the 3.0% regulatory maximum spread — while loans under $50,000 cap at 13.25%. There is no SBA-mandated credit score; lenders price the spread to the file, and strong borrowers with high credit and deal cash flow typically come in 0.25–0.75 points under the cap.
Nearly all acquisition loans float and reprice quarterly off Prime, and standard 10-year terms carry no prepayment penalty. This is general information, not legal, tax, or financial advice, and CapBench is not a lender.
Source: CapBench SBA Intelligence, based on public SBA, lender, franchise, FDIC, and related records. CapBench is not a lender and does not guarantee financing.
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