SBA Loan Rates in Q4 2026: How 7(a) and 504 Pricing Works

I get asked "what's the SBA rate?" about once a day. There isn't one.

There's a ceiling SBA sets for 7(a) loans, and there's a market rate on the 504 debenture that resets every month. Everything else is negotiation between you and the lender. As an SBA correspondent lender, Cressida Direct works with SBA wholesale lenders to place 7(a) and 504 loans, so I see how different lenders price the same file. The spread between them can be real.

So here are the numbers, with dates and sources. Then how they're built.

The numbers, as of November 5–6, 2026

Some CDCs round the November 504 effective rates to two decimals (commonly 6.58% / 6.58% / 6.57% for 10-, 20- and 25-year). The table uses the three-decimal NADCO-based figures published by CDC Small Business Finance so the month-to-month change is clear.

Smaller fixed-rate loans have higher caps (14.00% from $25,000 to $50,000 and 15.00% at $25,000 or less), but we rarely see SBA files that small.

How a 7(a) rate gets built

Base rate plus spread. That's it.

The base is usually Prime. Lenders can also use SBA's Optional Peg Rate, which SBA sets quarterly, and since March 1, 2026, certain alternative base rates: SOFR, the 5-year Treasury or the 10-year Treasury (SBA Procedural Notice 5000-875051). SBA's published values for November 1, 2026 were 3.95% for SOFR, 4.71% for the 5-year and 4.94% for the 10-year. With an alternative base, the total still can't exceed Prime plus the allowed spread.

For a variable loan, the initial maximum allowable rate is determined as of the date SBA receives the loan application (or, for a delegated lender, when an SBA loan number is requested), using the base rate in effect on the first business day of that month. After that, the rate then adjusts with the base on the schedule in your note.

The spread is where lenders differ. SBA sets the maximum, and the lender can go lower. On a strong file with real estate collateral, a lender has room to sharpen it. On a thin file, expect it near the cap.

Fixed-rate 7(a) loans have their own caps, confirmed in the Federal Register (87 FR 46883 / FR Doc. 2022-16162): Prime plus 5% for loans over $250,000, scaling up to Prime plus 8% at $25,000 and under. SBA republishes the fixed maximums each month as Prime moves. For November 2026 those published maximums remain 12.00% / 13.00% / 14.00% / 15.00% by loan-size band.

One quirk worth knowing. If you pay off more than 25% of a 7(a) loan with a maturity of 15 years or longer in any one of the first three years after first disbursement, SBA charges a subsidy recoupment (prepayment) fee of 5%, 3% or 1% of the amount prepaid, depending on the year (13 CFR 120.223). Plan a refinance around that.

How a 504 rate gets built

Different machine entirely.

The 504 has two loans. The bank's first mortgage (about half the project) is priced by the bank like any commercial loan. The CDC's piece, up to 40%, is funded by a debenture SBA guarantees and sells to investors once a month. Its rate follows Treasuries: the 5-year for 10-year debentures and the 10-year for 20- and 25-year debentures.

The "effective rate" CDCs publish rolls the ongoing fees into the number, which is why it runs higher than the bare debenture coupon. It's fixed for the life of the debenture.

Here's the part owners miss: the 504 rate isn't locked when you're approved. It's set when the debenture sells, after the project is complete. On a purchase that might be a month or two out. On construction, it can be a year. You carry interim financing until then.

For November 2026 pricing (debenture sale November 5, 2026), manufacturers, food supply chain businesses and rural businesses priced lower (6.291% on 10-year, 6.334% on 20-year, 6.340% on 25-year on the NADCO-based CDC table), mainly because their SBA fees are waived this fiscal year. Next monthly pricing is commonly listed on CDC funding calendars as December 10, 2026.

Fees change the math more than people think

A quarter point of rate gets all the attention. The fees often matter more.

7(a), fiscal year 2027 (SBA Information Notice 5000-881797, effective Oct. 1, 2026). The upfront guaranty fee is charged on the guaranteed portion, not the full loan, for loans with a maturity over 12 months:

• 2% for loans of $150,000 or less
• 3% for $150,001 to $700,000
• 3.5% of the first $1 million guaranteed plus 3.75% above that, for loans over $700,000 up to $5 million

Loans of $700,000 or less to manufacturers, food supply chain and rural businesses pay no upfront fee this year. The lender's 0.55% annual service fee can't be passed to you.

Quick math on a $1,000,000 7(a) loan with a 75% guaranty: $750,000 guaranteed, times 3.5%, is $26,250. It's usually financed into the loan. Still real money.

504, fiscal year 2027 (SBA Information Notice 5000-881796). 0.50% upfront and 0.203% annually on the outstanding balance of the loan (0.204% for refinances without expansion), with both waived for manufacturers, food supply chain and rural businesses. The CDC can also charge a processing fee of up to 1.5% of net debenture proceeds (13 CFR 120.971).

What I'd actually compare

When a borrower brings me two term sheets, I don't start with the rate. I start with three questions.

Is it fixed or variable, and for how long? A 7(a) at Prime plus 2.75% looks cheap until Prime moves. The 504's fixed debenture is a different kind of protection.

What's the all-in cost? Guaranty fee, packaging fees, the CDC processing fee, closing costs. Lenders who charge you to package a file have to disclose it, and SBA Form 159 packaging/referral compensation above $2,500 needs supporting documentation of the work and hours.

What happens if you sell or refinance early? 7(a) has the three-year prepayment fee on longer loans. 504 loans have their own prepayment terms, which the CDC spells out.

A lower number on a worse structure isn't a better loan.

Brokers: price the file before you price the rate

Most rate conversations with referral partners go sideways because the deal isn't ready. A clean file with occupancy, cash flow and equity documented gets better pricing. That's your bargaining power. If you send us the scenario through the broker portal, we'll tell you where we'd expect it to price and which wholesale lenders fit. Our broker deal readiness guide covers what to collect.

For the structural differences, see SBA 504 vs. 7(a) for commercial real estate and our SBA 504 loan requirements breakdown.

Frequently asked questions

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

There's no single rate. SBA sets maximums. As of November 5–6, 2026, with Prime at 7.00%, the variable cap for 7(a) loans over $350,000 is 10.00% (Prime plus 3.0%). Lenders can price below the cap.

What are current SBA 504 loan rates?

For debentures priced November 5, 2026, CDC Small Business Finance published NADCO-based effective rates of 6.590% for 10-year, 6.584% for 20-year and 6.574% for 25-year terms. Other CDCs often round those to 6.58% / 6.58% / 6.57%. The rate resets monthly and is set when your debenture sells.

Are SBA loan rates fixed or variable?

7(a) loans can be either. The 504 debenture portion is fixed for its full term, while the bank's first mortgage on a 504 is priced separately.

What is the maximum fixed rate on an SBA 7(a) loan?

For November 2026, 12.00% on loans over $250,000 and 13.00% from $50,000 to $250,000, with higher caps on smaller loans (14.00% and 15.00%). SBA updates these monthly on the FTA Wiki as Prime moves.

What fees come with an SBA loan in fiscal year 2027?

7(a) upfront guaranty fees run 2% to 3.75% of the guaranteed portion depending on size. 504 loans carry a 0.50% upfront and 0.203% annual SBA fee. Both programs waive some fees for manufacturers, food supply chain and rural businesses.

Does Cressida Direct set SBA loan rates?

As an SBA correspondent lender, Cressida Direct works with SBA wholesale lenders to place 7(a) and 504 loans. The lender prices the loan within SBA's limits.

Want to know where your deal would price?

Call me at 877.308.7557 or contact our team. Bring the purchase price, the loan amount and what the property or business earns, and I'll give you a straight read. You can also see our SBA 504 & 7(a) program page or start an application.

Rates and fees change. This article is general information, not a rate quote, loan commitment, or financial advice. Final pricing is set by the lender and, for 504 loans, the debenture sale. Cressida Direct is an SBA correspondent lender and does not fund or approve SBA loans itself.

About the author

Sources

1. Board of Governors of the Federal Reserve System, H.15 Selected Interest Rates (bank prime loan), release Nov. 6, 2026 (daily values through Nov. 5, 2026). https://www.federalreserve.gov/releases/H15/default.htm
2. SBA Fiscal Transfer Agent Wiki downloads (checked Nov. 6, 2026): Maximum Allowable Fixed Rate for 7(a) Loans — November 2026; Alternate Base Rates — November 2026; SBA Optional Peg Rates (FY2027 Q1). https://catran.sba.gov/ftadistapps/ftawiki/downloadsandresources.cfm
3. 13 CFR 120.214 (variable interest rates / maximum spreads), via eCFR. https://www.ecfr.gov/current/title-13/section-120.214
4. 13 CFR 120.223 (subsidy recoupment / prepayment fee), via eCFR. https://www.ecfr.gov/current/title-13/section-120.223
5. Federal Register, 87 FR 46883 (Aug. 1, 2022), Maximum Allowable 7(a) Fixed Interest Rates (FR Doc. 2022-16162). https://www.federalregister.gov/d/2022-16162
6. SBA Information Notice 5000-881797, 7(a) Fees Effective October 1, 2026 (publication Sept. 3, 2026). The official sba.gov document page returned HTTP 404 on Nov. 6, 2026. The fee text was checked line by line from a republished PDF that displays that notice header and control number. No working official document URL is cited here.
7. SBA Information Notice 5000-881796, 504 Fees for Fiscal Year 2027 (publication Sept. 3, 2026). Same access note as the 7(a) fee notice: the official document page returned HTTP 404, and the text was checked from a republished PDF with that control number.
8. CDC Small Business Finance, SBA 504 Rate History (NADCO-based effective rates; Nov. 5, 2026 pricing). https://cdcloans.com/sba-504-rates/
9. Cross-check (rounded): SomerCor, November 2026 SBA 504 Interest Rates (posted Nov. 5, 2026). https://somercor.com/november-2026-sba-504-interest-rates/
10. 13 CFR 120.971 (CDC fees, including processing fee up to 1.5% of net debenture proceeds). https://www.ecfr.gov/current/title-13/section-120.971
11. SBA FTA Form 159 FAQ (supporting documentation required if compensation exceeds $2,500). Form 159 FAQ (PDF)
12. SBA Procedural Notice 5000-875051 (alternate base rates; referenced on the FTA Alternate Base Rates data dictionary).