The Federal Reserve held interest rates steady at its March 2026 meeting, leaving the federal funds rate unchanged and keeping the Wall Street Journal Prime Rate at 6.75%. For SBA 7(a) borrowers, this means variable rates remain stable heading into Q2 2026.
SBA 7(a) variable rates are calculated as a base rate plus a lender spread. The SBA caps the spread based on loan size:
These are ceilings — many borrowers with strong credit and financials qualify for rates below the maximum. Preferred lenders with competitive pricing often come in 0.5%–1.5% below the cap on larger loans.
With the Fed signaling no near-term rate cuts, variable rates are unlikely to decline significantly in 2026. For borrowers who value payment predictability — especially on longer-term real estate or equipment loans — fixed rates warrant consideration. Fixed SBA 7(a) rates are typically priced at a premium above variable rates but eliminate exposure to future rate increases. Discuss both options with your lender and model the payment impact over the full loan term.
As of March 1, 2026, SBA lenders may now use alternative base rates including SOFR and Treasury Note rates in addition to the Prime Rate. The SBA still caps the total rate using prime-rate-based maximums regardless of which base rate the lender uses.
SBA 504 CDC debenture rates are set monthly based on Treasury bond rates. Current 504 effective rates for the 20-year term are running approximately 6.3%–7.0%. These rates are fixed for the full term of the CDC portion of the loan — a meaningful advantage in an environment where long-term rate direction is uncertain.
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