What is the maximum interest rate on an SBA line of credit?
Merrowgate Business Credit (emulated example) → Business line of credit → Written draw and repayment terms → Clear guarantee and renewal conditions
Answer in brief
The SBA caps variable 7(a) rates at the base rate plus 3.0 to 6.5 points, by size. With prime at 7.00, that is 10.00 to 13.50 percent (November 2026).
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 are the current SBA ceilings?
The SBA's lender page says 7(a) rates are negotiated but subject to SBA maximums, which are pegged to the prime rate or an optional peg rate. Its variable-rate table is below. SBA Express and Export Express are described as subject to the SBA maximum on the types of 7(a) loans page, and the Working Capital Pilot section publishes the same four ceilings. The Export Working Capital Program is the exception: the same page says it has no SBA maximum rate limit.
Maximum variable rate by loan size, percent. Ceilings from the SBA 7(a) terms page, read 8 November 2026. Computed rows add those margins to prime as published: 7.00 on November 5, 2026 (H.15) and the 8.50 monthly average that held from August 2023 to August 2024 (FRED MPRIME). Computed here, not published by the SBA.
| Loan amount | Ceiling | At prime 7.00 | At prime 8.50 |
|---|---|---|---|
| $50,000 or less | Base rate plus 6.5% | 13.50 | 15.00 |
| $50,001 to $250,000 | Base rate plus 6.0% | 13.00 | 14.50 |
| $250,001 to $350,000 | Base rate plus 4.5% | 11.50 | 13.00 |
| More than $350,000 | Base rate plus 3.0% | 10.00 | 11.50 |
Work out the ceiling for your own line
Enter the size of the line and the base rate you were quoted, using today's published prime rate if the lender bases it on prime. A $200,000 line with prime at 7.00 falls in the second row: 7.00 plus 6.0, or a 13.00 percent ceiling.
Applies the variable-rate ceilings on the SBA's lender page as read on 8 November 2026. It does not cover fixed-rate ceilings or the Export Working Capital Program, which has no SBA maximum. Estimate only, not financial advice. Nothing you type is stored or sent anywhere.
What is not covered by the ceiling?
Lenders can price below a ceiling. Fixed-rate 7(a) ceilings are published separately by the SBA and were not read for this entry, so the table is no use for a fixed rate.
Fees sit outside the rate. The SBA says lenders may pass the upfront guaranty fee on to the borrower but cannot charge the borrower the annual service fee. The percentages are set each year in an Information Notice, with the FY 2027 notice effective October 1, 2026. Get the dollar amount from your lender and enter it in the true cost calculator. The ceilings can change, so confirm them on the SBA page.
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 is the maximum interest rate on an SBA line of credit?." Content reviewed 8 November 2026. https://bestbusinesscreditlines.com/sba-line-maximum-interest-rate/