SBA Sets 4.75% Peg Rate for Q4 Small Business Loans
Published Date: 9/24/2025
Notice
Summary
The Small Business Administration set the Optional Peg Rate at 4.75% for October through December 2025. This rate helps decide interest on certain SBA loans, especially for small businesses using guaranteed or direct loans. Also, commercial loans for SBA 504 projects can’t charge more than 6% above the New York Prime rate or state legal limits, keeping borrowing fair and clear.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
Optional Peg Rate set at 4.75%
The Small Business Administration set the Optional Peg Rate at 4.75% for the October–December quarter of FY 2026 (October 1, 2025 through December 31, 2025). This rate may be used as a base rate for guaranteed fluctuating interest-rate SBA loans.
504 Project Loan Interest Cap
For any Third Party Lender commercial loan that funds part of an SBA 504 project, the maximum legal interest rate is 6% over the New York Prime rate, or, if that would exceed a State's constitutional or legal maximum, the applicable State maximum. This rule applies to loans funding any portion of a 504 project under 13 CFR 120.921(b).
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