Financing / Data study
SBA 7(a) loan rates in 2026: what 49,520 borrowers were actually charged
Lenders advertise a range. SBA publishes a ceiling. Neither tells you what businesses like yours ended up with, so we counted.
Ask five lenders what an SBA 7(a) loan costs and you will hear "prime plus something." SBA's website gives the most a lender is allowed to charge. What nobody publishes is the middle: the rate ordinary borrowers ended up with.
That number exists. SBA releases a record of every 7(a) loan it guarantees, including the interest rate at approval. We took the 57,632 loans approved between July 1, 2025 and June 30, 2026, set aside the 8,111 that were later cancelled and 1 with no rate recorded, and measured the rest: 49,520 loans worth $28.3 billion, made by 1,201 lenders.
What a typical loan costs
The median loan started at 9.5%. Half of all loans fell between 8.75% and 10.25%. One in ten started at 7.75% or less, and one in ten at 12% or more.
56% of 7(a) loans started between 8.5% and 10.5%
Share of 49,520 loans approved July 2025 to June 2026, by initial interest rate in half-point steps
Source: The Mercantile Record analysis of SBA 7(a) loan records as of June 30, 2026. Method.
Show the numbers as a table
| Initial interest rate | Loans | Share |
|---|---|---|
| under 5.5% | 138 | 0.3% |
| 5.5% to under 6% | 168 | 0.3% |
| 6% to under 6.5% | 439 | 0.9% |
| 6.5% to under 7% | 1,229 | 2.5% |
| 7% to under 7.5% | 1,568 | 3.2% |
| 7.5% to under 8% | 3,193 | 6.5% |
| 8% to under 8.5% | 3,226 | 6.5% |
| 8.5% to under 9% | 5,363 | 10.8% |
| 9% to under 9.5% | 5,573 | 11.2% |
| 9.5% to under 10% | 11,256 | 22.7% |
| 10% to under 10.5% | 5,503 | 11.1% |
| 10.5% to under 11% | 3,443 | 7.0% |
| 11% to under 11.5% | 1,566 | 3.2% |
| 11.5% to under 12% | 1,610 | 3.2% |
| 12% to under 12.5% | 1,443 | 2.9% |
| 12.5% to under 13% | 749 | 1.5% |
| 13% to under 13.5% | 1,873 | 3.8% |
| 13.5% to under 14% | 677 | 1.4% |
| 14% to under 14.5% | 486 | 1.0% |
| 14.5% or more | 17 | 0.0% |
Most 7(a) loans (86%) have a variable rate, written as the prime rate plus a spread. Prime is the benchmark banks use for business lending. It has been 6.75% since December 11, 2025.
So the number to watch is the spread. Across all loans its median was 2.75 points over prime. With prime where it is today, that is a 9.5% loan. If a lender offers you prime plus 2.75 on a mid-sized loan, you are being offered the going rate, not a bargain.
7(a) rates follow prime: the median peaked at 11.25% and was 9.25% in June 2026
Median initial rate of loans approved each month, and the prime rate on the first business day of that month. No loans were approved in October 2025.
Median 7(a) ratePrime rate
Source: The Mercantile Record analysis of SBA 7(a) loan records as of June 30, 2026. Prime: Federal Reserve H.15 via FRED. Method.
Show the numbers as a table
| Month approved | Loans | Median rate | Prime | Median spread |
|---|---|---|---|---|
| October 2019 | 3,578 | 7.5% | 5% | 2.5 |
| November 2019 | 3,489 | 7.25% | 4.75% | 2.5 |
| December 2019 | 3,327 | 7% | 4.75% | 2.25 |
| January 2020 | 3,027 | 7% | 4.75% | 2.25 |
| February 2020 | 2,980 | 7% | 4.75% | 2.25 |
| March 2020 | 2,764 | 7% | 4.75% | 2.25 |
| April 2020 | 3,336 | 5.75% | 3.25% | 2.5 |
| May 2020 | 1,608 | 5.55% | 3.25% | 2.3 |
| June 2020 | 1,997 | 5.5% | 3.25% | 2.25 |
| July 2020 | 2,631 | 5.5% | 3.25% | 2.25 |
| August 2020 | 2,901 | 5.5% | 3.25% | 2.25 |
| September 2020 | 4,845 | 5.45% | 3.25% | 2.2 |
| October 2020 | 2,319 | 5.75% | 3.25% | 2.5 |
| November 2020 | 2,251 | 5.5% | 3.25% | 2.25 |
| December 2020 | 3,046 | 5.5% | 3.25% | 2.25 |
| January 2021 | 1,099 | 5.5% | 3.25% | 2.25 |
| February 2021 | 3,477 | 5.5% | 3.25% | 2.25 |
| March 2021 | 3,979 | 5.5% | 3.25% | 2.25 |
| April 2021 | 4,020 | 5.3% | 3.25% | 2.05 |
| May 2021 | 3,669 | 5.25% | 3.25% | 2 |
| June 2021 | 4,442 | 5.25% | 3.25% | 2 |
| July 2021 | 4,972 | 5.25% | 3.25% | 2 |
| August 2021 | 5,541 | 5.25% | 3.25% | 2 |
| September 2021 | 6,514 | 5.25% | 3.25% | 2 |
| October 2021 | 1,907 | 5.5% | 3.25% | 2.25 |
| November 2021 | 2,701 | 5.5% | 3.25% | 2.25 |
| December 2021 | 3,250 | 5.5% | 3.25% | 2.25 |
| January 2022 | 3,002 | 5.75% | 3.25% | 2.5 |
| February 2022 | 3,048 | 5.5% | 3.25% | 2.25 |
| March 2022 | 4,102 | 5.5% | 3.25% | 2.25 |
| April 2022 | 3,768 | 6% | 3.5% | 2.5 |
| May 2022 | 3,964 | 6% | 3.5% | 2.5 |
| June 2022 | 4,279 | 6.5% | 4% | 2.5 |
| July 2022 | 3,801 | 7% | 4.75% | 2.25 |
| August 2022 | 4,187 | 7.75% | 5.5% | 2.25 |
| September 2022 | 4,237 | 7.99% | 5.5% | 2.49 |
| October 2022 | 3,776 | 8.5% | 6.25% | 2.25 |
| November 2022 | 3,935 | 8.75% | 6.25% | 2.5 |
| December 2022 | 4,020 | 9.49% | 7% | 2.49 |
| January 2023 | 3,652 | 10% | 7.5% | 2.5 |
| February 2023 | 3,707 | 10% | 7.5% | 2.5 |
| March 2023 | 4,790 | 10.25% | 7.75% | 2.5 |
| April 2023 | 3,992 | 10.25% | 8% | 2.25 |
| May 2023 | 4,619 | 10.5% | 8% | 2.5 |
| June 2023 | 4,443 | 10.75% | 8.25% | 2.5 |
| July 2023 | 4,082 | 10.75% | 8.25% | 2.5 |
| August 2023 | 4,331 | 11% | 8.5% | 2.5 |
| September 2023 | 6,400 | 11% | 8.5% | 2.5 |
| October 2023 | 3,516 | 11.25% | 8.5% | 2.75 |
| November 2023 | 4,895 | 11.25% | 8.5% | 2.75 |
| December 2023 | 4,585 | 11% | 8.5% | 2.5 |
| January 2024 | 4,803 | 11.25% | 8.5% | 2.75 |
| February 2024 | 4,689 | 11.25% | 8.5% | 2.75 |
| March 2024 | 5,830 | 11% | 8.5% | 2.5 |
| April 2024 | 5,649 | 11.25% | 8.5% | 2.75 |
| May 2024 | 5,764 | 11.25% | 8.5% | 2.75 |
| June 2024 | 5,258 | 11.25% | 8.5% | 2.75 |
| July 2024 | 5,701 | 11.25% | 8.5% | 2.75 |
| August 2024 | 5,886 | 11.25% | 8.5% | 2.75 |
| September 2024 | 6,041 | 11% | 8.5% | 2.5 |
| October 2024 | 5,712 | 10.75% | 8% | 2.75 |
| November 2024 | 5,003 | 10.75% | 8% | 2.75 |
| December 2024 | 5,872 | 10.5% | 7.75% | 2.75 |
| January 2025 | 5,835 | 10.25% | 7.5% | 2.75 |
| February 2025 | 5,842 | 10.25% | 7.5% | 2.75 |
| March 2025 | 7,279 | 10% | 7.5% | 2.5 |
| April 2025 | 4,708 | 10.25% | 7.5% | 2.75 |
| May 2025 | 6,873 | 10.25% | 7.5% | 2.75 |
| June 2025 | 3,087 | 10.25% | 7.5% | 2.75 |
| July 2025 | 3,995 | 10.25% | 7.5% | 2.75 |
| August 2025 | 4,106 | 10.15% | 7.5% | 2.65 |
| September 2025 | 5,779 | 10% | 7.5% | 2.5 |
| October 2025 | 0 | – | 7.25% | – |
| November 2025 | 4,433 | 9.75% | 7% | 2.75 |
| December 2025 | 4,369 | 9.75% | 7% | 2.75 |
| January 2026 | 5,529 | 9.25% | 6.75% | 2.5 |
| February 2026 | 3,953 | 9.5% | 6.75% | 2.75 |
| March 2026 | 4,066 | 9.5% | 6.75% | 2.75 |
| April 2026 | 4,512 | 9.5% | 6.75% | 2.75 |
| May 2026 | 4,005 | 9.5% | 6.75% | 2.75 |
| June 2026 | 4,773 | 9.25% | 6.75% | 2.5 |
The chart shows why the spread is the better yardstick. The typical 7(a) rate climbed when prime climbed and has come down with it. The distance between the two lines has stayed between about two and three points the whole way.
Bigger loans are cheaper
Loan size is the first thing that sets your rate.
The smallest loans cost 2.75 points more than the largest
Initial interest rate by loan size, loans approved July 2025 to June 2026
medianmiddle half of loans
Source: The Mercantile Record analysis of SBA 7(a) loan records as of June 30, 2026. Method.
Show the numbers as a table
| Loan size | Loans | 25th percentile | Median | 75th percentile |
|---|---|---|---|---|
| $25,000 or less | 4,805 | 9.75% | 11.25% | 13.25% |
| $25,001–$50,000 | 6,368 | 9.25% | 10.5% | 12.24% |
| $50,001–$150,000 | 10,980 | 9.25% | 9.75% | 10.5% |
| $150,001–$350,000 | 10,794 | 9% | 9.75% | 10% |
| $350,001–$1 million | 8,720 | 8.25% | 9% | 9.5% |
| $1–$2 million | 4,152 | 7.8% | 8.75% | 9.5% |
| $2–$5 million | 3,701 | 7.75% | 8.5% | 9.25% |
A loan of $25,000 or less had a median rate of 11.25%. A loan between $2 million and $5 million, 8.5%. That gap of 2.75 points is wider than the gap between banks and non-bank lenders, and wider than the gap between any two of the 30 most common industries.
The usual explanation is cost. A $30,000 loan takes a lender nearly as much work as a $3 million one and earns a fraction of the interest, so lenders charge more per dollar. SBA's rules allow it: the legal ceiling is higher for small loans, as the next section shows.
Small loans are a large share of the program by count and a sliver of it by dollars. Loans of $50,000 or less were 23% of all loans and 1.3% of the money. Loans over $2 million were 7% of loans and 44% of the money.
How close to the legal maximum
SBA caps the rate on variable-rate 7(a) loans. The cap is a base rate, usually prime, plus a spread that depends on the size of the loan.
| Loan amount | Maximum spread over base rate | Maximum rate with prime at 6.75% |
|---|---|---|
| $50,000 or less | +6.5 points | 13.25% |
| $50,001–$250,000 | +6 points | 12.75% |
| $250,001–$350,000 | +4.5 points | 11.25% |
| Over $350,000 | +3 points | 9.75% |
The base rate that counts is the one in effect on the first business day of the month the loan is approved, so we compared each loan's rate with prime on that day.
26% of the smallest loans are priced at the legal maximum
Share of variable-rate loans whose spread over prime equals SBA's cap for that loan size, July 2025 to June 2026
Source: The Mercantile Record analysis of SBA 7(a) loan records as of June 30, 2026. Prime is the rate in effect on the first business day of the approval month. Method.
Show the numbers as a table
| Loan size | Maximum spread over prime | Variable-rate loans | Priced at the maximum |
|---|---|---|---|
| $50,000 or less | +6.5 | 9,296 | 25.6% |
| $50,001–$250,000 | +6 | 14,328 | 2.1% |
| $250,001–$350,000 | +4.5 | 5,091 | 6.4% |
| Over $350,000 | +3 | 14,075 | 7.8% |
Among variable-rate loans of $50,000 or less, 26% were priced at the maximum. Not near it. At it.
The more useful finding is on the other side: 56% of loans that size were priced at least two points below the ceiling. The cap is not the price. If you are quoted the maximum on a small loan, most borrowers your size did better.
Above $50,000 the picture changes. Very few loans between $50,001 and $250,000 reach the cap (2%), because prime plus 6 sits far above the market, where the median spread is 3 points. For loans over $350,000 the cap is tight, prime plus 3, and 34% of loans were within half a point of it.
A few loans show a rate above the cap, fewer than 1% in every size group. The records do not say whether those used a different base rate, were entered wrongly, or were mispriced.
Small loans are getting more expensive
Small loans now cost prime + 4.15; big ones have not moved
Median spread over prime on variable-rate 7(a) loans, in percentage points, by fiscal year of approval (FY2026 through June 30, 2026)
Loans of $50,000 or lessLoans over $350,000
Source: The Mercantile Record analysis of SBA 7(a) loan records as of June 30, 2026. Method.
Show the numbers as a table
| Fiscal year approved | Median spread, $50,000 or less | Loans | Median spread, over $350,000 | Loans |
|---|---|---|---|---|
| FY2020 | +3.5 | 6,267 | +2 | 9,846 |
| FY2021 | +2.75 | 6,448 | +2 | 16,891 |
| FY2022 | +3 | 8,893 | +2 | 11,680 |
| FY2023 | +3 | 12,226 | +2 | 12,704 |
| FY2024 | +3 | 15,870 | +2.2 | 14,953 |
| FY2025 | +3.63 | 13,010 | +2.18 | 17,668 |
| FY2026 | +4.15 | 6,842 | +2 | 9,906 |
For loans of $50,000 or less, the median spread over prime was 3 points for loans approved in each of fiscal years 2022, 2023 and 2024. It rose to 3.63 in fiscal 2025 and to 4.15 in the first nine months of fiscal 2026. Over the same years the spread on loans above $350,000 stayed at about 2 points.
The records show the change, not the cause. SBA put a revised rulebook into effect on June 1, 2025, which it describes as reintroducing earlier lending criteria. That is the obvious candidate, but we have not tested it and will not guess.
Fixed rates were lower, where you could get one
Only 14% of loans had a fixed rate. Those that did started lower: a median of 8%, against 9.75% for variable loans. About one in five fixed-rate loans (21%) was priced at or below prime.
That does not mean a fixed rate is there for the asking. Fixed-rate lending is concentrated: of the 69 lenders that made at least 100 loans, only 5 made most of their loans at a fixed rate. Those lenders may also be choosing their strongest applicants. The records hold no credit scores, so we cannot check.
What the numbers do support is asking. If a lender offers both, get both quotes in writing. The lender table shows who makes fixed-rate loans.
Who made the loan, and how
| Group | Loans | Median rate | Middle half | Median spread | Median loan |
|---|---|---|---|---|---|
| Rate type | |||||
| Variable rate | 42,790 | 9.75% | 9%–10.5% | +2.75 | $215,000 |
| Fixed rate | 6,730 | 8% | 7.25%–9.24% | +1.05 | $200,000 |
| Lender type | |||||
| Banks (FDIC-insured) | 44,096 | 9.5% | 8.55%–10.25% | +2.5 | $200,000 |
| Credit unions | 1,428 | 9.25% | 8%–9.75% | +2.25 | $275,000 |
| Non-bank SBA lenders | 3,996 | 10.25% | 9.5%–12% | +3 | $250,000 |
| How it was approved | |||||
| Preferred Lenders Program | 29,748 | 9.5% | 8.5%–10% | +2.5 | $350,000 |
| SBA Express | 17,380 | 10% | 8.99%–11.5% | +3 | $50,000 |
| Standard 7(a), SBA-reviewed | 1,970 | 9% | 8%–9.75% | +2 | $350,000 |
| Business | |||||
| Existing business, over 2 years old | 27,251 | 9.75% | 8.75%–10.75% | +3 | $150,000 |
| Business 2 years old or less | 7,615 | 9.5% | 8.5%–10.5% | +2.5 | $150,000 |
| Startup (loan opens the business) | 8,390 | 9.5% | 8.75%–9.75% | +2.5 | $300,000 |
| Buying an existing business | 6,240 | 9% | 8.25%–9.5% | +2 | $746,000 |
| Repayment term | |||||
| 5 years or less | 3,551 | 9.24% | 8.24%–10.25% | +2.24 | $50,000 |
| Over 5, up to 10 years | 36,564 | 9.75% | 9%–10.5% | +2.75 | $150,000 |
| Over 10, under 25 years | 3,538 | 9% | 8.25%–9.5% | +2 | $650,000 |
| 25 years or more | 5,867 | 8.5% | 7.6%–9% | +1.25 | $1,296,000 |
| Structure | |||||
| Term loans | 36,731 | 9.5% | 8.5%–10% | +2.5 | $335,500 |
| Revolving lines of credit | 12,789 | 10.25% | 9.15%–11.75% | +3 | $50,000 |
A few things stand out.
- Credit unions were slightly cheaper than banks, 9.25% against 9.5%. Non-bank SBA lenders were more expensive, at 10.25%. Credit unions are a small part of the program: 1,428 loans out of 49,520.
- SBA Express loans cost more. Express loans stop at $500,000 and carry a 50% guaranty instead of 75% or 85%. Their median rate was 10%, against 9.5% for loans made under the Preferred Lenders Program. They are also much smaller, with a median of $50,000 against $350,000, so part of that is the size effect again.
- Lines of credit cost more than term loans, 10.25% against 9.5%.
- Loans to buy an existing business had the lowest median of any group, 9%, and the largest typical size.
None of these comparisons holds loan size constant. Read the gaps as descriptions of who borrowed, not as the price of choosing one option over another.
Where you borrow
A state with many large real-estate loans would look cheap for that reason alone. To compare states fairly, we re-weighted each state's loans to the national mix of loan sizes.
Nebraska borrowers pay prime + 1.3. In Louisiana it is prime + 3.45
Median spread over prime in percentage points, re-weighted so every state has the national mix of loan sizes. Loans approved July 2025 to June 2026.
under +2+2 to +2.5+2.5 to +3+3 or moretoo few loans
Source: The Mercantile Record analysis of SBA 7(a) loan records as of June 30, 2026. Method.
Show the numbers as a table
| Nebraska | 1 | +1.3 | 8.5% | +1.25 | $189,500 | 244 |
|---|---|---|---|---|---|---|
| South Dakota | 2 | +1.59 | 8.5% | +1.5 | $178,750 | 106 |
| Oklahoma | 3 | +1.69 | 8.75% | +1.5 | $300,000 | 373 |
| Kansas | 4 | +1.78 | 8.5% | +1.5 | $285,000 | 321 |
| New Hampshire | 5 | +1.86 | 9% | +2 | $90,000 | 405 |
| Wisconsin | 6 | +1.89 | 8.75% | +2 | $230,750 | 750 |
| Maine | 7 | +1.95 | 8.75% | +1.99 | $100,000 | 241 |
| Minnesota | 8 | +2 | 8.99% | +2 | $222,500 | 989 |
| Mississippi | 9 | +2.16 | 9% | +2 | $342,500 | 253 |
| Arkansas | 10 | +2.18 | 9% | +2 | $288,500 | 269 |
| Massachusetts | 11 | +2.19 | 9.25% | +2.25 | $107,500 | 1,306 |
| West Virginia | 12 | +2.19 | 9.5% | +2.5 | $150,000 | 127 |
| Kentucky | 13 | +2.22 | 9% | +2 | $186,600 | 398 |
| Vermont | 14 | +2.23 | 9.75% | +2.75 | $50,000 | 134 |
| Indiana | 15 | +2.33 | 9.25% | +2.25 | $200,000 | 821 |
| Iowa | 16 | +2.36 | 9.25% | +2.25 | $216,000 | 265 |
| Rhode Island | 17 | +2.42 | 9.5% | +2.5 | $100,000 | 169 |
| Missouri | 18 | +2.56 | 9.5% | +2.5 | $257,000 | 817 |
| Illinois | 19 | +2.59 | 9.5% | +2.5 | $239,750 | 1,604 |
| Michigan | 20 | +2.62 | 9.5% | +2.5 | $210,600 | 1,409 |
| Colorado | 21 | +2.63 | 9.5% | +2.5 | $250,000 | 1,349 |
| Ohio | 22 | +2.63 | 9.5% | +2.5 | $150,000 | 1,877 |
| New Mexico | 23 | +2.64 | 9.5% | +2.75 | $161,550 | 208 |
| Connecticut | 24 | +2.67 | 9.75% | +3 | $100,000 | 764 |
| Tennessee | 25 | +2.69 | 9.5% | +2.75 | $300,000 | 689 |
| Montana | 26 | +2.7 | 9.12% | +2 | $287,500 | 152 |
| Pennsylvania | 27 | +2.7 | 9.65% | +2.55 | $200,000 | 1,707 |
| South Carolina | 28 | +2.72 | 9.75% | +2.75 | $300,000 | 590 |
| Puerto Rico | 29 | +2.73 | 10.5% | +3.5 | $50,000 | 524 |
| North Carolina | 30 | +2.75 | 9.5% | +2.75 | $313,350 | 1,256 |
| Idaho | 31 | +2.76 | 9.5% | +2.5 | $135,000 | 601 |
| California | 32 | +2.78 | 9.74% | +2.75 | $250,000 | 6,032 |
| Delaware | 33 | +2.78 | 9.75% | +2.75 | $150,000 | 191 |
| Nevada | 34 | +2.78 | 9.5% | +2.75 | $207,500 | 536 |
| Arizona | 35 | +2.81 | 9.5% | +2.75 | $326,150 | 1,074 |
| New York | 36 | +2.81 | 9.75% | +3 | $150,000 | 3,164 |
| Utah | 37 | +2.84 | 9.25% | +2.5 | $200,000 | 969 |
| Washington | 38 | +2.84 | 9.5% | +2.5 | $187,000 | 1,643 |
| Virginia | 39 | +2.86 | 9.75% | +2.75 | $250,000 | 959 |
| New Jersey | 40 | +2.89 | 9.75% | +2.75 | $200,000 | 1,748 |
| Oregon | 41 | +2.89 | 9.99% | +3 | $100,000 | 923 |
| Florida | 42 | +2.96 | 9.75% | +2.75 | $257,100 | 3,934 |
| Texas | 43 | +3 | 9.5% | +2.5 | $349,900 | 4,037 |
| Maryland | 44 | +3.09 | 9.75% | +2.75 | $125,050 | 1,046 |
| District of Columbia | 45 | +3.17 | 10% | +3 | $158,000 | 124 |
| Alabama | 46 | +3.22 | 9.5% | +2.75 | $287,950 | 340 |
| Georgia | 47 | +3.43 | 9.5% | +2.5 | $350,000 | 1,407 |
| Louisiana | 48 | +3.45 | 9.75% | +2.75 | $284,400 | 337 |
The lowest spreads are in the Plains and the upper Midwest. Nebraska, South Dakota, Oklahoma, Kansas, Wisconsin and Minnesota are all among the eight cheapest states, along with New Hampshire and Maine. The highest are in the South and the Mid-Atlantic: Louisiana, Georgia, Alabama, the District of Columbia and Maryland.
The distance from top to bottom is 2.15 points. On a $250,000 loan that is about $5,400 a year in interest at the start.
The records do not say why, and we have not tested explanations. Alaska, Hawaii, North Dakota and Wyoming had fewer than 100 loans each and are not ranked.
By industry
Industry matters less than you might expect. Among the 30 industries with the most loans, median rates ran from 8.25% to 10.24%.
| Full-service restaurants | 2,381 | $300,000 | 9.5% | 8.75%–10% |
|---|---|---|---|---|
| Limited-service restaurants | 1,765 | $350,000 | 9.5% | 8.75%–10% |
| Gyms and fitness centers | 1,240 | $286,300 | 9.5% | 8.97%–10% |
| Residential remodelers | 1,029 | $101,700 | 10.1% | 9.5%–11.25% |
| Plumbing and HVAC contractors | 969 | $225,000 | 9.75% | 8.75%–10.25% |
| Coffee, juice and snack bars | 910 | $319,500 | 9.5% | 8.75%–9.75% |
| All other specialty trade contractors | 811 | $200,000 | 9.5% | 8.75%–10.35% |
| General automotive repair | 779 | $250,000 | 9.5% | 8.5%–10.25% |
| Child care centers | 755 | $489,000 | 9% | 7.97%–9.75% |
| Beauty salons | 754 | $90,000 | 9.75% | 8.99%–11% |
| Landscaping services | 754 | $133,300 | 9.75% | 8.75%–10.5% |
| Hotels and motels | 724 | $2,772,200 | 8.25% | 7.75%–8.75% |
| Electrical contractors and other wiring installation contractors | 630 | $150,000 | 9.75% | 9%–10.74% |
| Insurance agencies and brokerages | 578 | $199,250 | 9.75% | 9%–10.49% |
| Other personal care services | 568 | $232,500 | 9.5% | 9%–10% |
| Dentists' offices | 565 | $469,800 | 9% | 7.5%–10% |
| All other amusement and recreation industries | 555 | $354,500 | 9.5% | 8.75%–10% |
| Physicians' offices | 531 | $250,000 | 9.5% | 8%–10% |
| Janitorial services | 512 | $150,000 | 9.75% | 9.25%–10.5% |
| Pet care | 509 | $250,000 | 9.5% | 8.5%–10.24% |
| Liquor stores | 496 | $624,400 | 9% | 8.5%–9.5% |
| Home health care services | 493 | $208,000 | 9.75% | 8.75%–10.25% |
| Gas stations with convenience stores | 460 | $1,547,500 | 8.5% | 8%–9% |
| Offices of all other miscellaneous health practitioners | 460 | $175,000 | 9.75% | 8.75%–10.5% |
| Management consulting | 457 | $100,000 | 10.24% | 9.75%–11.5% |
| Law offices | 445 | $150,000 | 9.75% | 9%–10.95% |
| General freight trucking, local | 427 | $83,000 | 9.75% | 9%–10.93% |
| Chiropractors' offices | 409 | $150,000 | 9.5% | 8.75%–10.25% |
| All other professional, scientific, and technical services | 390 | $200,000 | 9.75% | 9%–10.5% |
| Offices of mental health practitioners | 389 | $135,000 | 9.75% | 9%–10.9% |
Look at the "median loan" column before drawing conclusions. Hotels and gas stations borrow millions against real estate, and their rates are low for that reason. Industries that borrow similar amounts pay similar rates.
The month with no loans
A month with no SBA loans at all
7(a) loans approved per month, including loans later cancelled
Source: The Mercantile Record analysis of SBA 7(a) loan records as of June 30, 2026. Method.
Show the numbers as a table
| Month | Loans approved |
|---|---|
| January 2023 | 3,998 |
| February 2023 | 4,046 |
| March 2023 | 5,363 |
| April 2023 | 4,388 |
| May 2023 | 5,030 |
| June 2023 | 4,838 |
| July 2023 | 4,479 |
| August 2023 | 4,806 |
| September 2023 | 7,440 |
| October 2023 | 3,948 |
| November 2023 | 5,595 |
| December 2023 | 4,997 |
| January 2024 | 5,264 |
| February 2024 | 5,123 |
| March 2024 | 6,397 |
| April 2024 | 6,204 |
| May 2024 | 6,434 |
| June 2024 | 5,904 |
| July 2024 | 6,357 |
| August 2024 | 6,670 |
| September 2024 | 7,349 |
| October 2024 | 6,926 |
| November 2024 | 5,993 |
| December 2024 | 7,076 |
| January 2025 | 7,177 |
| February 2025 | 6,933 |
| March 2025 | 8,829 |
| April 2025 | 6,065 |
| May 2025 | 8,458 |
| June 2025 | 3,813 |
| July 2025 | 4,855 |
| August 2025 | 4,929 |
| September 2025 | 7,024 |
| October 2025 | 0 |
| November 2025 | 5,227 |
| December 2025 | 5,125 |
| January 2026 | 6,595 |
| February 2026 | 4,691 |
| March 2026 | 4,829 |
| April 2026 | 5,042 |
| May 2026 | 4,324 |
| June 2026 | 4,991 |
There is a hole in the data. No 7(a) loan was approved between September 30, 2025 and November 13, 2025: 43 days with nothing. The federal government was shut down from October 1, and while it was, SBA's loan system could not issue approvals. Lenders pushed 818 approvals through on the last day before the gap and 1,122 on the first day after.
If you are counting on a 7(a) loan to close a purchase by a fixed date, this is a risk to plan around. An application that does not yet have an SBA approval when a shutdown starts has to wait until it ends.
The drop in June 2025 lines up with something else: SBA's revised lending rules took effect on June 1, and approvals went from 8,458 in May to 3,813 in June.
How to use this when you have a quote in hand
- Turn the quote into a spread. Subtract prime (6.75% today) from the rate you were offered. That is the number to compare.
- Compare it with loans your size. Use the loan-size chart above. If your spread is above what three quarters of borrowers your size paid, ask the lender why.
- Ask for a fixed-rate quote too, even if the lender leads with variable.
- Get a second quote from a different kind of lender. A bank that makes thousands of SBA loans and a local bank or credit union price differently. The lender table shows what each of the 69 busiest lenders typically charges.
- Add the fees. The rate is not the whole cost. SBA's upfront guaranty fee is 2% to 3.75% of the guaranteed part of the loan. The 7(a) calculator works out the fee, the payment and the APR with the fee included.
What this data cannot tell you
- It is the rate at approval. Variable rates have moved since. We see only the starting point.
- It has no credit scores, revenue or collateral. Two borrowers with the same loan size can deserve different rates. These figures describe what was charged, not what you qualify for.
- Cancelled loans are left out. They were 14% of approvals in the period.
- Spreads are measured against prime. SBA also allows other base rates, and added three more options on March 1, 2026. A loan priced off one of those will show a spread that is slightly off.
- Fees are not in the rate. Use the calculator for the full cost.
- Fiscal 2026 is nine months of data, through June 30, 2026.
- Lender-entered data has errors. A handful of loans show rates below 4% or above the legal cap. They are too few to move a median.
Method in brief
We used SBA's public file of 7(a) loans approved since fiscal 2020, dated June 30, 2026. For each loan approved in the 12 months to that date and not cancelled, we took the initial interest rate, the gross loan amount, the lender, the state of the project and the industry code. The spread is the initial rate minus the prime rate on the first business day of the approval month. All "typical" figures are medians. State spreads are standardized to the national mix of four loan-size groups, the same groups SBA uses for its rate caps. The full method, its limits and the tables behind the charts are on the data page.
Sources
- 7(a) & 504 FOIA dataset, U.S. Small Business Administration. Loan-level records as of June 30, 2026. Every loan count and rate in this article comes from this file. Checked October 5, 2026.
- 7(a) loan program: terms, conditions and eligibility, U.S. Small Business Administration. Maximum interest rates and guaranty percentages. Checked October 5, 2026.
- SOP 50 10 8.1, Lender and Development Company Loan Programs, U.S. Small Business Administration. Effective October 1, 2026. Rule that the base rate on the first business day of the month applies; list of permitted base rates. Checked October 5, 2026.
- Bank Prime Loan Rate Changes: Historical Dates of Changes and Rates (PRIME), Federal Reserve Board, H.15 release, via FRED. Series last updated September 18, 2026; latest change December 11, 2025. Checked October 5, 2026.
- Information Notice 5000-880695, Issuance of SOP 50 10 8.1, U.S. Small Business Administration. Lists the 2025 and 2026 notices folded into the current rules, including alternate base rates from March 1, 2026. Checked October 5, 2026.
- SBA Loans During the Government Shutdown: What Borrowers Need to Know, Capital Bank, an SBA lender. Published October 3, 2025. A lender's account of why no new SBA loan numbers could be issued from October 1, 2025. Checked October 5, 2026.
Corrections and updates
- First published.