SBA Sets 4.50% Peg Rate for Small Business Loans This Quarter
Published Date: 3/30/2026
Notice
Summary
The Small Business Administration set the Optional Peg Rate at 4.50% for April through June 2026, which helps decide interest rates on certain SBA loans. This affects small businesses using SBA direct or 504 loans, with lenders capped on how high they can charge based on state laws. If you’re borrowing or lending through SBA programs, keep an eye on these rates—they impact your loan costs this quarter!
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
Optional Peg Rate set at 4.50% (Apr–Jun 2026)
If you borrow through SBA direct loans or guaranteed fluctuating-rate SBA loans, the Optional Peg Rate is set at 4.50% for the April–June quarter of FY 2026. Lenders may use this 4.50% rate as a base when setting your loan's interest during that quarter.
Legal cap on 504 project lender interest
For any Third Party Lender's commercial loan that funds part of an SBA 504 project, the maximum legal interest rate is the New York Prime rate plus 6%. If that amount exceeds the maximum interest rate allowed by a State's constitution or laws, the State-permitted maximum rate applies.
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