Question 1

What is the current SBA 7(a) interest rate?

Accepted Answer

SBA 7(a) variable-rate loans are priced at Prime + a lender spread. As of April 2026, Prime Rate is 6.75%. The SBA caps the spread at 3.0% for loans over $350K, so the max variable rate is about 9.75%. Fixed rates have different caps.

Question 2

How is a SBA 504 loan structured?

Accepted Answer

A standard SBA 504 loan uses a 50/40/10 split: 50% from a conventional bank lender at negotiated rates, 40% from a Certified Development Company (CDC) at a fixed SBA debenture rate, and 10% borrower equity.

Question 3

What is SOFR and how does it relate to SBA loans?

Accepted Answer

SOFR (Secured Overnight Financing Rate) is the benchmark overnight lending rate published by the NY Fed. Some SBA loans use SOFR as a base rate instead of Prime. Prime is typically Fed Funds + 3.00%, while SOFR tracks Fed Funds minus approximately 0.08%.

Question 4

What SBA guarantee fee will I pay?

Accepted Answer

For FY2026, the SBA upfront guarantee fee depends on loan size: 2% for loans up to $150K, 3% for $150K–$700K, 3.5% for $700K–$1M, and a tiered 3.5%/3.75% for loans over $1M. The fee is charged on the guaranteed portion (85% for ≤$150K, 75% for larger loans).

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SBA 7(a) Loan Estimate

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