SBA 7(a): interest

A 7(a) rate is usually variable, built on the Prime rate plus a spread the lender adds. The SBA caps how far above Prime that spread can go, and the cap depends on the size of the loan — currently Prime plus 3.0% to 6.5%. Prime itself moves with the Federal Reserve. It is 7.00% as of September 17, 2026, after the Fed held its target range at 3.75–4.00% on October 28, 2026 — so a 7(a) rate today starts from that 7.00% base and the spread is added on top. A fixed rate is possible instead, with its own SBA maximum. Your credit, the loan size, and the term all move the spread.

A 7(a) loan runs up to 25 years for commercial real estate and up to 10 years for working capital or equipment. The most you can borrow is $5 million.

SBA 7(a): the guaranty fee

The SBA guarantees part of every 7(a) loan — up to 85% on loans of $150,000 or less, 75% above that — and charges an upfront fee on the guaranteed portion for doing it. The lender owes the fee to the SBA and may pass it on to you, and the loan itself can cover it. The fee schedule below is SBA Information Notice 5000-881797, for loans approved October 1, 2026 through September 30, 2027, with a term over 12 months.

One example, so the math is visible: on a $500,000 loan the SBA guarantees 75%, or $375,000. At 3%, the upfront fee is $11,250. The lender also pays the SBA an annual service fee of 0.55% of the guaranteed balance — that one is the lender's cost and cannot be passed on to you.

SBA 504: interest and fees

A 504 loan is two loans at once: the bank lends 50% of the project, a Certified Development Company (CDC) lends 40%, and you put in 10% down. The bank's half is priced like a conventional commercial loan. The CDC's 40% is a fixed rate, set when the debenture is sold — it follows the market and changes month to month, so the right number is the current one, which our SBA calculator on this site runs. The term is 25 years for real estate, 10 years for equipment, and the property must be at least 51% owner-occupied.

The 504 fees are set by SBA Information Notice 5000-881796: 0.50% upfront plus 0.203% a year on the debenture. For a debt refinance without expansion (non-manufacturer), the annual part is 0.204%.

Other costs to expect

Beyond interest and the SBA fee, two more things can add cost, and both vary by lender and by deal: the lender's own origination or packaging fee, and third-party costs such as the appraisal, environmental review, title, and legal work. We flag them here because they are real costs even though no fixed schedule covers them — ask what they are on your deal before you commit.

How this works with Floridian Mutual

We are a broker, not a direct lender. We check your deal against the programs we place, tell you plainly whether it works, and package it for the lender that fits — the lender sets the final rate and fees. SBA loans are subject to SBA eligibility and approval, and Floridian Mutual is not endorsed by the SBA. Typical ranges, subject to underwriting. Not a commitment to lend.

Try the numbers on your own deal with our SBA calculator, or talk through an SBA deal with us.