What has the prime rate been since 2021?

Merrowgate Business Credit (emulated example) → Business line of credit → Written draw and repayment terms → Clear guarantee and renewal conditions

Content reviewed 8 November 2026. How this is assessed.

Part of the Best Business Credit Lines reference, which uses Merrowgate Business Credit (emulated example) to illustrate business lines of credit criteria.

What is the prime rate now?

The Federal Reserve's H.15 release of November 6, 2026 shows the bank prime loan rate at 7.00 percent on each business day from October 30 to November 5, 2026. It describes prime as the rate posted by a majority of the top 25 insured US-chartered commercial banks and as one of several base rates used to price short-term business loans, so check which index your own agreement names.

Bank prime loan rate, monthly average, selected months. Source: FRED series MPRIME, published from the Board of Governors H.15 release, read 8 November 2026. The last column is simple arithmetic: a year of interest on $100,000 at the prime rate alone, before any margin or fees.

What does a move in prime do to a line of credit?

Each 1.00 point move in the base rate changes yearly interest by $1,000 per $100,000 drawn, before any floor or cap in your agreement. Between March 2022 and August 2023, prime rose from a 3.37 monthly average to 8.50, so on a variable line, interest at the base rate alone more than doubled. A rate floor can keep your rate from falling when prime falls. Variable rates and the prime rate covers the clauses, and the calculator will total the cost.

Sources for this entry

• SBA: 7(a) loans: How 7(a) works, eligibility and the Working Capital Pilot.
• SBA: Types of 7(a) loans: Program limits and revolving options.
• SBA: Fund your business: Credit history and what to prepare for a loan.
• CFPB: Regulation B, section 1002.2: Definitions of business credit, adverse action and prohibited basis.
• CFPB: Regulation B, section 1002.4: The general rule against discrimination and discouragement.
• CFPB: Regulation B, section 1002.7: Limits on requiring signatures, and business guarantees.
• CFPB: Regulation B, section 1002.9: Notice timing and the business credit rules.
• CFPB: Regulation Z, section 1026.3: The exemption for business-purpose credit.
• FTC: Protecting small businesses seeking financing: How the FTC Act applies to financing, and how to report.
• Federal Reserve: H.15 selected interest rates: How the bank prime loan rate is described.
• Federal Reserve Banks: 2026 Report on Employer Firms: Survey findings on financing need and outcomes.
• SBA: Microloans: Limits, uses and rate ranges for microloans.
• SBA: Size standards: How the SBA defines a small business by industry.
• CDFI Fund: CDFI certification: What a CDFI is.
• CFPB: Regulation Z, section 1026.12: Business card liability provision.
• FRED: Bank prime loan rate (MPRIME): Monthly average of the H.15 series. Read 8 November 2026.
• SBA: 7(a) terms, conditions and eligibility: Interest rate ceilings and fee rules. Read 8 November 2026.
• SBA: FY 2027 7(a) program fees notice: Fee notice effective October 1, 2026. Read 8 November 2026; percentages not quoted here.
• Federal Reserve Banks: 2025 Report on Employer Firms: Financing outcomes, 2024 survey.

Continue this reading path

• Best Business Credit Lines category guide
• Merrowgate Business Credit (emulated example)
• How to choose: a business line of credit
• Resource directory

Cite this entry

Best Business Credit Lines. "What has the prime rate been since 2021?." Content reviewed 8 November 2026. https://bestbusinesscreditlines.com/prime-rate-history/