Effective August 1, 2022, for any complete application received by SBA, or any request for an SBA loan number made under the lender’s delegated authority, the following maximum fixed interest rates apply –
- For loans of $25,000 and less, maximum allowable fixed rate = Prime + 8% (800 basis points)
- For loans of more than $25,000 up to and including $50,000, maximum allowable fixed rate = Prime + 7% (700 basis points)
- For 7(a) loans over $50,000 up to and including $250,000, maximum allowable fixed rate = Prime + 6% (600 basis points)
- For loans over $250,000, maximum allowable fixed rate = Prime + 5% (500 basis points)
Source: Federal Register August 1, 2022
SBA proposed to use loan amounts as the basis upon which the variable interest rate is set, instead of loan maturities. SBA proposed the following maximum variable interest rates for all 7(a) loans as follows:
- $50,000 and Less –Prime + 6.5
- $50,001 to $250,000 — Prime + 6.0
- $250, 001 to $350,000 — Prime + 4.5
- Over $350,000 — Prime + 3.0
Source: Federal Register June 30, 2022
Questions about how this impacts your system? FRANdata has been serving the franchisor and lender community for more than 30 years. Contact us at franchiseregistry@frandata.com if you want to talk about capital access or how to grow your franchise.