Updated March 10, 2026
Today's Best Business Loan Rates
SBA loans, term loans, and business lines of credit rates.
SBA 7(a) Loan
10.50%
Term Loan
9.50%
Business Line of Credit
10.00%
Rate Trends
SBA 7(a) Loan
Term Loan
Business Line of Credit
Lender Comparison
Business Loan Rates — Lender Comparison
| Lender | Rate ↑ | APR ⇅ | |
|---|---|---|---|
BluevineFeatured | 7.90% | 7.90% | Apply Now |
LendioFeatured | 7.99% | 8.49% | Apply Now |
FundboxFeatured | 8.99% | 8.99% | Apply Now |
Kabbage (AmEx) | 9.00% | 9.50% | Apply Now |
OnDeck | 9.99% | 10.99% | Apply Now |
Wells Fargo | 10.50% | 10.85% | Apply Now |
Understanding Business Loan Rates
What Affects Business Loan Rates
Business loan rates depend on the type of loan, your business credit score, personal credit score, annual revenue, time in business, and industry risk. SBA loan rates are tied to the prime rate or Treasury rates with a maximum spread. Online lender rates are risk-based and can vary widely.
Fixed vs Variable Business Rates
SBA 7(a) loans have variable rates tied to the prime rate, while SBA 504 loans offer fixed rates. Traditional bank term loans are usually fixed. Business lines of credit almost always have variable rates. Fixed rates provide payment predictability; variable rates may start lower but carry risk of increases.
APR vs Factor Rate
Traditional business loans use APR to express the annual cost of borrowing. Some alternative lenders use a factor rate (e.g., 1.2), which is multiplied by the loan amount to determine total repayment. A factor rate of 1.2 on a $100,000 loan means you repay $120,000. Factor rates can obscure the true cost, so convert to APR for comparison.
SBA Loan Rate Caps
SBA 7(a) loans have maximum interest rates set by the SBA, currently prime + 2.25-2.75% for loans over $50,000. This cap protects borrowers from excessive rates. SBA 504 loans offer fixed rates typically below conventional business loan rates. These government-backed programs offer the best rates but have strict eligibility requirements.
Historical Context
Current business loan rates reflect the broader interest rate environment shaped by Federal Reserve policy. Rates have been adjusting as the market prices in expectations for future Fed actions. Comparing rates from multiple lenders remains the best strategy for finding the lowest rate for your situation.
How to Get the Best Business Loan Rate
SBA loans have the lowest rates but take longest to fund (45-90 days).
Online lenders fund faster (1-3 days) but charge higher rates than traditional banks.
A business line of credit is ideal for managing cash flow fluctuations.
Have your financial documents ready: 2 years of tax returns, P&L, and balance sheet.
Start building business credit early — it's separate from personal credit.
Get Notified When Business Loan Rates Drop
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Calculate What These Rates Mean for You
Frequently Asked Questions
What types of business loans are available?
Common business loan types include SBA loans (government-backed with low rates), term loans (lump sum with fixed repayment), business lines of credit (flexible borrowing), equipment financing, invoice factoring, and merchant cash advances. The best type depends on your needs, timeline, and qualifications.
What credit score do I need for a business loan?
Requirements vary by lender and loan type. SBA loans typically require 680+, traditional bank loans need 700+, and online lenders may accept scores as low as 600-625. Having a strong business credit score (Dun & Bradstreet, Experian Business) also helps.
How long does it take to get approved for a business loan?
Approval timelines vary significantly. Online lenders can approve and fund in 1-3 days. Traditional bank loans take 2-4 weeks. SBA loans are the slowest, typically taking 30-90 days from application to funding due to government processing requirements.
What documents do I need for a business loan application?
Most business loan applications require 2 years of business and personal tax returns, profit and loss statements, balance sheets, bank statements (3-12 months), a business plan, and proof of business registration. Online lenders may have simplified requirements.
SBA loans vs conventional business loans: which is better?
SBA loans offer the lowest rates (currently around 10.50% for 7(a) loans) and longer repayment terms, but take longer to fund and have strict eligibility requirements. Conventional loans from banks or online lenders fund faster and may have fewer requirements, but typically charge higher rates.
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Rates shown are for informational purposes only and do not constitute a loan offer or financial advice. All rates are subject to change without notice. Last updated: March 10, 2026.