2025-23607NoticeWallet

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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Key Dates

Published Date
Effective Date
12/22/2025
1/1/2026

Department and Agencies

Department
Independent Agency
Agency
Small Business Administration
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