SBA Fixes Loan Rates at 4.50% for January 2026
Published Date: 12/22/2025
Notice
Summary
Starting January 2026, the Small Business Administration sets its Optional Peg Rate at 4.50% for SBA direct loans, helping small businesses plan their borrowing costs. Also, commercial loans for SBA 504 projects can’t charge more than 6% above the New York Prime rate, or the state’s legal max if that’s lower. These changes keep borrowing fair and predictable for small business owners.
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Cap on Interest for SBA 504 Commercial Loans
If you take a commercial loan that funds any part of an SBA 504 project, the lender may not charge more than 6% above the New York Prime rate; if that amount would exceed your State's constitutional or statutory maximum, the State's maximum rate applies (pursuant to 13 CFR 120.921(b)).
Optional Peg Rate set at 4.50%
If you borrow from the SBA or use an SBA guaranteed fluctuating-rate loan, the SBA's Optional Peg Rate is set at 4.50% for the January–March quarter of FY 2026. The Optional Peg Rate (13 CFR 120.214) is a published base rate used to help small businesses plan borrowing costs for that quarter.
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