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SBA Loans: the lowest rates and longest terms — with more paperwork
SBA-backed loans carry some of the lowest rates and longest terms available to small businesses, because a government guaranty reduces the lender's risk. The trade-off is documentation and time.
A WithFunded guide · Rates as of June 2026 · Updated quarterly
Quick facts
- Best for
- Established businesses wanting low rates and long terms
- Rate basis
- Variable maximum 9.75%–13.25% by loan size
- Loan size
- Up to $5 million (7a)
- Terms
- Up to 10 years (working capital/equipment), up to 25 years (real estate)
- Funding speed
- Weeks to months (government underwriting)
- Credit fit
- Generally stronger credit and 2+ years in business
SBA 7(a) maximum rates by loan size
The SBA caps what lenders can charge as the prime rate plus a maximum spread that shrinks as the loan gets larger. At the current 6.75% prime rate:
| Loan size | Maximum rate |
|---|---|
| $50,000 or less | Prime + 6.5% = 13.25% |
| $50,001–$250,000 | Prime + 6.0% = 12.75% |
| $250,001–$350,000 | Prime + 4.5% = 11.25% |
| Over $350,000 | Prime + 3.0% = 9.75% |
SBA 7(a) variable maximums at the current 6.75% prime rate. Many borrowers qualify below the maximum. Source: U.S. Small Business Administration.
For real estate and major equipment, the SBA 504 program's CDC portion runs roughly ≈5.6%–6.0% on 10–25 year terms — among the cheapest financing a small business can get in 2026.
SBA lending in 2026
The programs had a record year: in fiscal 2025, SBA 7(a) and 504 approved 84,840 loans totaling $45.1 billion, with the average 7(a) loan around $477,642. More than half of all 7(a) loans were under $150,000, so SBA isn't only for large borrowers.
SBA vs. a line of credit or online term loan
SBA wins on
- Rate — often the lowest available
- Term length — longest amortization
- Large amounts and real estate
Faster options win on
- Speed — a line of credit funds in days
- Less paperwork
- Lower credit thresholds
What credit score do you need?
There's no single SBA-wide minimum, but lenders generally look for solid personal and business credit, at least two years in business, and the ability to repay. Checking your options through WithFunded uses a soft credit inquiry with no impact on your score.
Frequently asked questions
- What credit score do I need for an SBA loan?
- The SBA doesn't set one fixed minimum, but participating lenders typically look for strong personal and business credit along with at least two years in business and demonstrated repayment ability.
- How long does an SBA loan take to fund?
- Weeks to a few months. The government guaranty that lowers your rate also adds underwriting steps, so SBA is slower than online term loans or lines of credit.
- How much can I borrow with an SBA 7(a) loan?
- Up to $5 million. In practice the average 7(a) loan in fiscal 2025 was about $477,642, and more than half were under $150,000.
- Are SBA rates really capped?
- Yes. The SBA sets maximum rates as prime plus a spread that decreases with loan size — currently 9.75% to 13.25% at a 6.75% prime rate. Many borrowers qualify below the maximum.
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SBA rate maximums and FY2025 lending figures are from the U.S. Small Business Administration; the prime rate is the WSJ prime rate as of June 2026. Rate maximums are caps, not quotes.
Disclaimer. WithFunded and Big Think Capital are a financing marketplace; we are not the direct lender and do not guarantee funding, approval, rates, or terms. Everything on this page is a representative example only — not an offer or a commitment to lend, and not financial advice. Actual rates, fees, payments, and terms are set by the funding lender and depend on your business, credit, and the product. Where required by state law, the lender provides cost-of-financing disclosures before any agreement is signed.