October 2026 SBA 7(a) Variable Rates

October 2026 rate snapshot

Prime: The published prime rate was 7.00% on October 21, 2026, according to Federal Reserve H.15. It had increased from 6.75% in July 2026.

Variable maximums: SBA lender guidance and 13 CFR 120.213 set maximum spreads of 6.50% for loans of $50,000 or less, 6.00% from $50,001 to $250,000, 4.50% from $250,001 to $350,000, and 3.00% above $350,000. At the October 21, 2026 prime rate, those all in maximums were 13.50%, 13.00%, 11.50%, and 10.00%.

Other benchmarks: The SBA optional peg rate was 5.00% for the October through December 2026 quarter, published in the Federal Register on October 1, 2026. The published SBA 504 debenture range was 6.59% to 6.98% on October 27, 2026.

Observed pricing: SBA data held by PeerSense shows fiscal year 2026 first quarter approvals averaged 9.79%.

Maximum spread caps by loan size

Published caps: SBA lender guidance and 13 CFR 120.213 allow a maximum spread over the base rate of 6.50% for loans of $50,000 or less, 6.00% from $50,001 to $250,000, 4.50% from $250,001 to $350,000, and 3.00% above $350,000.

All in maximums: With the 7.00% prime rate published on October 21, 2026 by Federal Reserve H.15, the corresponding maximum all in rates were 13.50%, 13.00%, 11.50%, and 10.00%.

Acquisition point: For a typical acquisition loan above $350,000, the applicable variable spread cap is 3.00%, producing a 10.00% all in maximum at that dated prime rate. That is a ceiling, not a statement of the rate an approved borrower will receive. SBA approval data held by PeerSense shows actual approved pricing can be lower than the cap.

Variable versus fixed 7(a) pricing

Variable rate: A variable 7(a) rate is based on an allowed base rate, commonly prime, plus a spread subject to SBA limits. When prime changes, the variable rate adjusts under the loan documents. The prime rate was 7.00% on October 21, 2026, according to Federal Reserve H.15.

Fixed rate: SBA sets fixed rate maximums separately from variable spread caps. This page does not provide a current fixed rate quote, so fixed pricing requires a quote for the specific transaction.

When each may fit: Variable pricing can suit a borrower who accepts payment changes in exchange for pricing tied to the selected base rate. Fixed pricing can suit a borrower who values a set payment structure for the quoted period. The choice depends on the borrower's tolerance for payment changes and the available quote. It does not require a forecast of future rates.

What approved 7(a) loans actually priced at

Fiscal year 2025: SBA loan data held by PeerSense records 77,798 approvals with a disclosed initial rate from October 2024 through September 2025. The average was 10.32%, the median was 10.25%, and the middle half ranged from 9.50% to 10.99%. The average approval was $478,183.

Fiscal year 2026 first quarter: From October 1 through December 31, 2025, 10,319 approvals averaged 9.79%, with a 9.75% median and a middle half from 9.00% to 10.25%. The average approval was $506,792.

By size: Loans of $50,000 or less averaged 11.06%, with a 10.78% median. Loans from $50,001 to $250,000 averaged 9.92%, with a 10.00% median. Loans from $250,001 to $350,000 averaged 9.63%, with a 9.75% median. Loans above $350,000 averaged 8.68%, with a 9.00% median. Later quarters are not yet in the data.

7(a) compared with other commercial financing

Published rates: On October 27, 2026, published ranges were 6.59% to 6.98% for an SBA 504 debenture, 6.28% to 9.25% for conventional financing, 6.84% to 8.50% for CMBS, and 6.00% to 13.00% for bridge financing. SOFR was 3.93% on October 26, 2026.

Structure: SBA 7(a) loans can reach $5 million, with maturities of 10 years or less unless financing real estate or long lived equipment, and up to 25 years for real estate. Uses include acquisition, working capital, equipment, real estate, and certain debt refinancing, according to sba.gov.

504 context: SBA 504 financing has a debenture from $25,000 to $5.5 million, is fixed, and allows 25 years for real estate or 10 years for equipment. Its structure includes up to 50% senior lender financing, up to 40% CDC debenture financing, and at least 10% borrower equity, according to SBA information.

How this page connects to the SBA rates hub

This deep dive: This page focuses on October 2026 7(a) variable rate caps, approved pricing from SBA loan data held by PeerSense, and dated comparisons with other commercial financing types.

SBA loan rates hub: The SBA loan rates hub provides the broader rate reference for SBA financing. It gives the page context while this deep dive concentrates on 7(a) pricing, size tiers, and the October 27, 2026 snapshot.

Live market rates dashboard: The live market rates dashboard is the place to follow current market rate information as published data changes. In October 2026, PeerSense tracked 288 active SBA capital sources, including 246 with a published rate.

Role of PeerSense: PeerSense is a capital advisory firm. The client pays the fee under a written agreement. A lender quote is still required for transaction specific pricing, especially for fixed rate 7(a) financing.