SBA 7(a) rates are negotiated between the borrower and lender but are subject to SBA maximums based on the loan size and an approved base rate. SBA 504 pricing uses a different two-part structure, with the CDC/SBA portion tied to debenture-market pricing.
Quick answer: The SBA sets a maximum rate for 7(a) loans (a base rate plus a capped spread), and lenders negotiate the actual rate below that cap. The snapshot below shows the current maximums by loan size — these are ceilings, not quotes, and strong deals often price lower.
How SBA 7(a) pricing works
A participating lender selects an approved base rate (commonly prime) and adds a negotiated spread within SBA limits. The actual rate reflects loan size, maturity, credit, cash flow, collateral, transaction complexity, and lender appetite. See our SBA 7(a) loans page for how the program works.
How SBA 504 pricing differs
A 504 project commonly includes a first mortgage priced by the participating lender and a CDC/SBA debenture portion with its own long-term, fixed-rate pricing. The two components are separate — avoid treating a single blended rate as your number unless it's calculated for your specific transaction. See SBA 504 loans and our SBA 7(a) vs. 504 guide.
How to compare SBA offers
Compare the rate type, reset frequency, term, amortization, guaranty fees, lender fees, prepayment provisions, required equity, and whether working capital or other costs are included. A slightly higher rate with lower fees and a longer term can cost less overall. See our SBA down payment guide.
Frequently asked questions
Are SBA rates set by the government?
The SBA sets program rules and maximums for 7(a), but participating lenders negotiate the actual rate within those limits.
Is SBA 504 always fixed rate?
The CDC/SBA portion is known for long-term fixed-rate financing. The first-mortgage portion has separate lender pricing.
Does every borrower receive the maximum rate?
No. The maximum is a cap, not a standard quote. Strong transactions may price below it.
How often do SBA rates change?
Variable 7(a) pricing can change when the selected base rate changes. This page shows the base rate and the date it applied.