Estimate monthly payments, total interest, and guarantee fees for SBA 504, 7(a), and Express loans. Current July 2026 rates built in — no signup required.
The current prime rate as of July 2026 is 6.75%. SBA 7(a) loan rates range from 9.75% to 14.75% depending on loan size and term. SBA 504 loan rates rose this month, with the 10-year at 6.19%, 20-year at 6.20%, and 25-year at 6.17% — fixed for the life of the loan.
| Program | Rate Type | July 2026 Rate | Max Loan | Max Term |
|---|---|---|---|---|
| SBA 504 — 10 yr | Fixed (CDC portion) | 6.19% | $5.5M CDC portion | 10 years |
| SBA 504 — 20 yr | Fixed (CDC portion) | 6.20% | $5.5M CDC portion | 20 years |
| SBA 504 — 25 yr | Fixed (CDC portion) | 6.17% | $5.5M CDC portion | 25 years |
| SBA 7(a) — Large | Variable (Prime + spread) | 9.75%–11.75% | $5M | 10–25 yrs |
| SBA 7(a) — Small | Variable (Prime + spread) | 11.75%–14.75% | $5M | 10–25 yrs |
| SBA Express | Variable (Prime + spread) | 11.25%–13.25% | $500K | 10 years |
| SBA Microloan | Fixed (intermediary sets) | 8%–13% | $50K | 6 years |
Prime rate: 6.75% (as of July 2, 2026). SBA Optional Peg Rate: 4.75% (Q3 2026). 504 rates set monthly by SBA funding calendar. 7(a) rates are maximum allowable — your lender may offer below maximum.
The programs serve different purposes. For projects over $2M with a real estate component, 504 almost always wins on total interest paid over the term. For projects that include any use of funds that is not real estate or equipment — working capital, AR financing, debt refinancing, business acquisition — 7(a) is the only option that can wrap everything into one loan.
| Feature | SBA 504 | SBA 7(a) |
|---|---|---|
| Best for | Owner-occupied real estate, major equipment | Acquisitions, working capital, mixed use |
| July 2026 rate | 6.17–6.20% (CDC fixed) | 9.75%–14.75% (variable) |
| Loan structure | Bank 50% + CDC 40% + Borrower 10% | Single loan, bank holds all |
| Max amount | $5.5M CDC portion | $5M total |
| Down payment | 10% (15–20% for special purpose) | 10%+ (20–30% for acquisitions) |
| Max term (real estate) | 25 years | 25 years |
| Working capital use | No | Yes |
| Business acquisition | No | Yes |
| Closing time | 60–90 days (more complex) | 30–60 days |
| Rate risk | None — CDC portion is fixed | Reprices with prime rate |
Rule of thumb: Buying commercial real estate or major equipment over $1M? Start with 504. Buying a business, need working capital, or have a mixed-use project? 7(a) is your program. Below $500K and need speed? SBA Express.
A 504 loan requires a 10% down payment from the borrower. The CDC funds 40% of the loan and a traditional lender funds 50%. The SBA guarantees 100% of the CDC portion. This structure is what allows the fixed rate on the CDC portion to be significantly lower than market variable rates.
A traditional bank or credit union provides 50% of the total project cost. The rate is set by the bank — typically Prime + a spread, variable. This portion is the senior loan and is secured by a first lien on the property.
A Certified Development Company (CDC) provides 40% of the project cost, funded via SBA debenture. The rate is fixed for the full term — 6.17–6.20% in July 2026. This is the portion most borrowers think of as "the SBA loan."
You bring 10% as your down payment — significantly less than the 20–25% typically required for conventional commercial real estate financing. Special purpose properties and startups may require 15–20%.
| Component | Amount | Rate | Est. Monthly Payment |
|---|---|---|---|
| Bank loan (50%) | $750,000 | ~9.50% variable | ~$7,740/mo (25-yr amort) |
| CDC loan (40%) | $600,000 | 6.20% fixed | ~$4,385/mo (20-yr) |
| Down payment (10%) | $150,000 | — | — |
| Total | $1,500,000 | Blended ~7.5% | ~$12,125/mo combined |
Example only. Bank portion rate is illustrative — actual rate set by your lender. Use the calculator above for your specific numbers.
Dedicated 504 calculator that amortizes the bank portion and CDC portion separately at their real rates, with worked examples at three project sizes.
Open 504 calculator →Side-by-side comparison of rates, structure, use cases, down payments, and total cost of capital for real-world deal sizes.
Read guide →Current rates for all SBA programs, how they are set, what drives them, and what to expect if the Fed moves rates.
Read guide →Credit score minimums, DSCR requirements, collateral rules, and the documentation lenders actually want to see.
Read guide →