New Maximum Interest Rates Allowed for SBA 7(a) Program

SBA 7(a) Variable Loan Rate Maximums

The interest rates for 7(a) loans vary based on the loan amount, as per the following breakdown:

• $50,000 or less: The maximum spread is 6.5% resulting in a current max rate of 15.00%.

• $50,001 to $250,000: The maximum spread is 6% resulting in a current max rate of 14.50%.

• $250,001 to $350,000: The maximum spread is 4.5% resulting in a current max rate of 13.00%.

• Over $350,000: The maximum spread is 3% resulting in a current max rate of 11.5%.

Please note that these rates are current as of October 2023, calculated with the current prime rate of 8.50%. It's also important to keep in mind that these interest rates are maximum rates. The actual rates may vary and average less.

Maximum Interest Rates Allowed for SBA 7(a) Small and SBA Express Loans

For 7(a) Small and SBA Express loans, the maximum interest rates allowed are determined by the loan amount and whether the interest rate is fixed or variable. The interest rates are as follows:

• Loans $50,000 or less: These loans cannot exceed the Prime or SBA Optional Peg Rate + 6.5%. Whether the rate is fixed or variable, it is subject to this maximum limit.

• Loans $50,001 up to and including $250,000: For these loans, the highest permissible interest rate is the Prime or SBA Optional Peg Rate + 6.0%.

• Loans $250,001 up to and including $350,000: The maximum allowable interest rate for these loans is the Prime or SBA Optional Peg Rate + 4.5%.

• Loans $350,001 up to and including $500,000: The interest rate for these loans cannot exceed the Prime or SBA Optional Peg Rate + 3.0%.

These interest rates are designed to facilitate borrowing for small businesses while ensuring that the cost of borrowing remains within reasonable limits. Please remember that these are the maximum interest rates, and the actual rates may vary depending on multiple factors such as the borrower's creditworthiness, loan term, and overall risk profile of the loan.

Maximum Interest Rates Allowed for 7(a) CAPLines

The interest rates for the 7(a) CAPLines are determined by the loan amount and whether the interest rate is fixed or variable. The maximum allowable interest rates are as follows:

• Loans $50,000 or less: For these loans, the maximum interest rate cannot exceed the published maximum allowable fixed rate or, if variable, the Prime or SBA Optional Peg Rate + 6.5%.

• Loans $50,001 up to and including $250,000: These loans cannot exceed the published maximum allowable fixed rate or, if variable, the Prime or SBA Optional Peg Rate + 6.0%.

• Loans $250,001 up to and including $350,000: For these loans, the highest permissible interest rate is the published maximum allowable fixed rate or, if variable, the Prime or SBA Optional Peg Rate + 4.5%.

• Loans $350,001 and greater: The interest rate for these loans cannot exceed the published maximum allowable fixed rate or, if variable, the Prime or SBA Optional Peg Rate + 3.0%.

Remember, these are maximum rates, actual rates may be lower depending on various factors including the borrower's creditworthiness, loan term, and overall risk profile of the loan.