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    What Are The Current SBA Interest Rates In 2020?

    Wood block word 2020, hatched egg and coins with small plant tree

    In an effort to support the American small business community, the Small Business Administration offers a range of different financing measures at affordable rates. The following loan programs are operated by the SBA:

    • Standard 7(a)
    • 7(a) small loan
    • SBA express
    • Export express
    • Export working capital
    • International Trade
    • The SBA 504 loan program provides financing to purchase fixed assets or expand facilities.

    All loans are guaranteed by the SBA and disbursed through a network of lending partners.

    How Are SBA Loan Rates Determined?

    The interest rate you receive is determined by individual lenders, however, the SBA puts the ceiling on the interest rate a lender can set. Typically, lenders use the Federal Reserve prime rate plus a markup. Your lender’s markup is capped by the SBA, based on the term and size of the loan. 

    Less frequently, a lender may use the one-month London Interbank Offered Rate (LIBOR), plus 3% rather than the Federal Reserve daily prime rate. You have the power to negotiate the markup with the lender and whether your interest rate will be variable or fixed.

    What Are The Latest SBA 7(a) Loan Rates?

    7(a) Loans

    • Maximum loan amount is $5 million
    • 85% guarantee on loans up to $150,000, 75% guarantee for loans greater than $150,000
    • Funds can be used to purchase real estate, equipment, fixtures, construct facilities, working capital, to refinance debt, purchase inventory, start a new business, or as a seasonal line of credit
    • Terms depend on the ability to repay, generally 5-10 years for most loans, and 25 years for real estate
    • Interest rates:

    Loans less than 7 years:

    • $0 - $25,000: Prime +4.25%
    • $25,001 - $50,000: Prime +3.25%
    • Over $50,000: Prime +2.25%

    Loans more than 7 years:

    • $0-$25,000: Prime +4.75
    • $25,001 - $50,000: Prime +3.75%
    • Over $50,000: Prime +2.75%

    To qualify you must meet the SBA definition of a small business, demonstrate credit management, and be able to repay the loan. There’s a prepayment penalty for loans that mature in 15 or more years if prepaid during the first three years.

    7(a) Small Loans

    • Loans under $350,000
    • All terms are the same. Qualification criteria are the same, except that applicants must be credit scored by the SBA

    SBA Express

    • Loans up to $350,000
    • SBA guarantee is 50% of the total loan
    • The total term is 120 months. Revolving lines of credit mature in five years
    • For loans up to $50,000, interest is Prime +6.5%
    • For loans over $50,000, interest is Prime +4.5%
    • Everything else is the same as 7(a) loans

    What Are The Latest SBA 504 Loan Rates?

    SBA 504 loans are provided through SBA-licensed Certified Development Companies (CDC).

    • Maximum loan amounts range from $5 million to $5.5 million
    • Guarantee: Up to 40% guaranteed, 50% non-guaranteed, and 10% plus 5% equity in the new business or 5% equity if the project is a special use property
    • Fixed-rate long-term loans that can be used to purchase fixed assets for expansion or modernizing facilities, including:
      • Purchasing land and making improvements
      • Purchase of existing buildings
      • Construction of new facilities, or renovating existing facilities
      • Purchase of long-term machinery
      • Refinancing of debt associated with expanding the business or purchasing assets
    • SBA provides up to 40% of the total project cost. The participating lender covers up to 50% of total project costs
    • The borrower contributes 10% of the total project cost. Under special circumstances, the borrower may be asked to contribute up to 20% of the total project cost
    • Must have no more than $15 million in tangible net worth, an average net income not exceeding $5 million, and not engaged in speculative activities

    Lenders Offering Great SBA-Backed Loans


    • SmartBiz utilizes innovative software to match borrowers with the most likely SBA-licensed lender to approve their application
    • SBA-guaranteed loans from $30,000 to $5 million
    • Interest rates from 4.75% to 7.00% with repayment terms of 10-25 years
    • SBA will pay principal, interest, and fees for six months on all loans disbursed before September 27, 2020

    Funding Circle

    • Online lending marketplace
    • Currently processing SBA PPP loans. It follows up with tech support to help you improve your application
    • Upon completion, Funding Circle refers your application to the most appropriate funding partners


    • Fundera is a small business loan marketplace
    • A good resource for all small business funding needs, including SBA loans
    • An online survey helps you quickly determine your eligibility for an SBA 7(a) loan
    • The site provides guidance on how to apply and connects you with SBA-approved lenders

    • Competitive rates for the loans
    • Long repayment terms
    • Loans offer government-guaranteed
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    • Award-winning low APR rates
    • Few restrictions on loan purpose
    • Dedicated account manager
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    • AAA+ Business Bureau
    • Work Qith Start-up Companies
    • Easy To Get Personal Advice
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    The SBA is one of the best resources for small business loans. Affordable interest rates and terms mean that you can meet your financial goals without collapsing under the weight of punitive loan terms. Applying for SBA loans is complex and time-consuming, but alternative lenders are making the process much simpler.