Current SBA Loan Rates 2024
SBA loans have some of the most competitive rates on the market. If you’re looking to secure an SBA loan to support your business’s growth, you should be aware of how the rates fluctuate from month to month
What Are the Current SBA Loan Rates?
This page was last updated on December 19th, 2024
SBA loans are highly coveted because of the competitive interest rates and increased affordability for business owners. Despite the lengthy underwriting process, SBA loans continue to be one of the most popular financing solutions for entrepreneurs and business owners nationwide.
If you need capital faster than the SBA can provide, National Business Capital offers a fast, efficient, and convenient approach. Keep in mind, though, that clients of National Business Capital can only facilitate business acquisitions if they already own an existing, profitable business.
As of December 19th, 2024, the SBA loan rates are:
| SBA 7(a) (variable rates) | 9.75% to 12.25% |
| SBA 7(a) (fixed rates) | 12.5% to 15.5% |
| SBA Express loan rates | 12% to 14% |
| SBA CDC/504 loan rates | 6.093% to 6.495% |
| SBA Economic Injury Disaster Loan (EIDL) rates | 2.75% to 3.75% |
| SBA Microloan rates | 8% to 13% |
Prime Rate: 7.5%
LIBOR (One Month + 3%): 4.9602%
SBA PEG Rate: 4.38%
How Are SBA Loan Rates Set?
The interest rate you’ll pay on your SBA loan will depend on the program you’ve chosen, the amount you’re seeking to borrow, and the repayment terms you’ll return the borrowed amount within. It will also depend on the daily prime rate, which will fluctuate based on the actions of the Federal Reserve.
Your lender will offer a fixed or variable interest rate depending on your desired program. Fixed interest rates are static throughout the term of your loan, whereas variable interest rates will change based on the prime rate, the LIBOR rate, or the SBA Optional Peg Rate, which is “a weighted average of rates the federal government pays for loans with maturities similar to the average SBA loan,” according to the SBA.
While the maximum rate is set by external factors, your specific interest rate will be determined by your lender based on your business’s information. You can negotiate to reach a lower interest rate, but they can’t offer an interest rate higher than the maximum set by the SBA.
SBA 7(A) Loan Rates
The SBA 7(A) program is the most popular of the bunch. With a maximum borrowing amount of $5 million and repayment terms ranging from 10 to 25 years, this financing option is used by business owners for various reasons, including asset purchases, working capital management, and business expansion.
Here are the current SBA 7(A) variable and fixed interest rates:
Repayment Terms Under 7 Years
| Loan Amount | Rate Standard | Variable Rate Max (w/ Current 7.5% Prime Rate) |
| 0 to $25,000 | Base + 4.25% | 11.75% |
| $25,001 to $50,000 | Base + 3.25% | 10.75% |
| Above $50,000 | Base + 2.25% | 9.75% |
Repayment Terms Above 7 Years
| Loan Amount | Rate Standard | Variable Rate Max (w/ Current 7.5% Prime Rate) |
| 0 to $25,000 | Base + 4.75% | 12.25% |
| $25,001 to $50,000 | Base + 3.75% | 11.25% |
| Above $50,000 | Base + 2.75% | 10.25% |
SBA 7(A) Fixed Interest Rates
| Loan Amount | Maximum Rate | Maximum Rate Allowed (w/ Current 7.5% Prime Rate) |
| $0 to $25,000 | Prime + 8% | 15.5% |
| $25,001 to $50,000 | Prime + 7% | 14.5% |
| $50,001 to $250,000 | Prime + 6% | 13.5% |
| Above $250,000 | Prime + 5% | 12.5% |
SBA Express Loan Rates
SBA Express loans are very similar to their 7(A) counterparts, but the funding is granted much faster, and the borrowing rate is considerably lower at $350,000. Interest rates are generally 4.5% to 6.5% above the prime rate because of the convenience and speed offered by this option, but they can’t exceed the maximum interest rate set by the SBA.
| Loan Amount | Maximum Rate | Maximum Rate Allowed (w/ Current 7.5% Prime Rate) |
|---|---|---|
| $0 to $50,000 | Prime + 6.5% | 14% |
| $50,001 to $350,000 | Prime + 4.5% | 12% |
SBA CDC/504 Loan Rates
CDC/504 SBA loans are made up of two subcategories: a bank loan and a CDC loan. The bank loan covers 50% of the total amount, and the CDC loan, granted by a non-profit certified development company, will cover 40%. A down payment from the borrower covers the remaining 10%.
This type of financing is used to purchase land, buildings, or expensive equipment for business growth. However, you can’t use a 504 loan for working capital purposes, inventory purchases, or other minor business activities, making them uniquely beneficial for those seeking to make a sizable purchase.
The interest rates for the CDC portion of this loan are always fixed and stay the same throughout the lifetime of the loan. The bank loan, on the other hand, might have a variable interest rate or balloon payment, depending on the lender you’re dealing with.
| Term | Interest Rate |
|---|---|
| 10-Year Term | 6.495% |
| 20-Year Term | 6.160% |
| 20-Year Term Refi | 6.190% |
| 25-Year Term | 6.093% |
| 25-Year Term Refi | 6.122% |
SBA Economic Injury Disaster Loan (EIDL) Rates
Otherwise known as SBA Disaster loans, EIDLs are sought by businesses after they’ve sustained serious economic loss due to a natural or economic disaster. You can only apply for this financing if the federal government has given a disaster declaration for your area, and you meet the following qualifications:
- You’re a business, agricultural cooperative, or nonprofit
- You’ve sustained a significant economic loss as a result of a disaster, and you’re unable to pay your usual operating expenses because of it
- Your organization has less than 500 employees
- You have a FICO score of at least 570 for loans less than $500,000, and a FICO score of 625 for loans over $500,000
Here are the current interest rates for SBA EIDLs:
| Type of Business | Interest Rate |
|---|---|
| Non-Profit | 2.75% |
| For Profit | 3.75% |
SBA Microloan Rates
SBA microloans carry maximum borrowing amounts of $50,000, with repayment terms generally between 1 to 6 years. The average interest rate for an SBA microloan is between 8% and 13%. Additionally, this option is usually secured by collateral or the asset the business is planning to purchase with the financing, but this will depend on your business needs and the lender you’re dealing with.
The current SBA microloan interest rates are:
| Loan Amount | Interest Rate |
|---|---|
| Under $10,000 | Cost to Fund + 8.5% |
| More than $10,000 | Cost to Fund + 7.75% |
Factors That Influence SBA Loan Rates
Your SBA loan rate depends on the following factors:
- The Fed’s prime rate
- Your loan amount
- Your repayment term
- The type of SBA loan you’re applying for
The prime rate fluctuates based on U.S. economic conditions. In periods of high inflation, the Fed will raise the prime rate to deter borrowing and limit the flow of money through the economy. During strong economies, they’ll lower the rate to encourage spending and business growth.
Finance Your Growth with National Business Capital
Searching for a lender that fits your circumstances requires time and attention, something that many business owners can’t afford to waste as they manage the day-to-day of their operations. National streamlines your search for financing, connecting you with a diverse lender marketplace to find you competitive financing faster than with traditional lenders. Our team of experienced Business Finance Advisors takes the time to learn about you, your business, and your challenges to find you the financing that best fits your needs, forming a relationship that can help you with any financing needs in the future.
Our entire process, including our streamlined, digital application, ensures you can get back to focusing on what truly matters—your business. Ready to get started? Complete our application in minutes and take the first step towards growing your business.
Phil Fernandes
Phil Fernandes serves as Chief Operating Officer for National Business Capital. He has 15 years of experience in sales and 10+ years of management experience as National’s VP of Financing/Analytics. Phil is also an excellent writer who's completed the Applied Business Analytics executive program at MIT and regularly contributes articles to National Business Capital’s blog.
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