Rates by product, with the date on each number
Rates are quoted differently by product, so this table keeps each range in the form its source uses. APR is the best single number to compare, because it includes interest and fees over a year [1].
| Product | Range | Form of the number |
|---|---|---|
| Equipment financing | 4% to 45% | APR [1] |
| Bank small business loan | 6.37% to 10.98% | Average rate, first quarter 2026 [1] |
| SBA microloan | Generally 8% to 13% | Rate set by the nonprofit lender [4] |
| SBA 7(a), variable | 10% to 13.5% | Legal maximum at prime 7.00% [2] [3] |
| SBA 7(a), fixed | 12% to 15% | Rate [1] |
| Business line of credit | 10% to 99% | APR [1] |
| Invoice factoring or financing | 10% to 79% | APR [1] |
| Online term loan | 14% to 99% | APR [1] |
| Merchant cash advance | 40% to 350% | Estimated APR; priced by factor rate [1] |
NerdWallet calls 6% to 17% a good rate on a business loan, with higher rates common on online loans for startups and owners with weak credit [1].
SBA 7(a) rate caps, worked out from today's prime rate
SBA 7(a) rates are negotiated with the lender but cannot exceed SBA maximums, which are pegged to the prime rate [2]. The Federal Reserve's H.15 release for October 20, 2026 shows the bank prime loan rate at 7.00% [3]. Here are the variable caps at that prime rate.
| Loan amount | SBA maximum | Cap today |
|---|---|---|
| $50,000 or less | Prime + 6.5% [2] | 13.5% |
| $50,001 to $250,000 | Prime + 6.0% [2] | 13.0% |
| $250,001 to $350,000 | Prime + 4.5% [2] | 11.5% |
| Over $350,000 | Prime + 3.0% [2] | 10.0% |
Two more SBA cost rules worth knowing. SBA microloans carry a separate cap: the nonprofit lender's own cost of funds from the SBA plus 7.75% on loans over $10,000, or plus 8.5% on $10,000 or less [2]. And 7(a) loans with terms of 15 years or longer carry a prepayment fee if you prepay 25% or more in the first three years: 5% in year one, 3% in year two and 1% in year three [2].
Factor rate, fee rate, simple interest: why they look cheaper than they are
Not every lender quotes an APR. Some quote a monthly or weekly rate, a factor rate, or a flat fee [1]. The Federal Reserve Bank of Cleveland showed in March 2026 testimony how far apart these can be on the same deal [5].
| How the lender described it | Total owed | Estimated APR |
|---|---|---|
| 1.15 factor rate | $59,000 | About 70% [5] |
| 4% fee rate | $56,500 | About 45% [5] |
| 9% simple interest | $54,500 | About 46% [5] |
The 1.15 factor rate sounds like the smallest number and costs the most. The 9% simple interest offer owes the fewest dollars, yet its APR lands next to the 4% fee rate, because the way each is charged over the six months differs. The Fed's focus groups found APR was among the details owners cared most about [5]. Ask every lender for the APR including fees, and the total you will repay in dollars. Or put the quote into the translator in our offer comparer.
What each rate means in dollars on $50,000
A rate range from 6% to 99% is hard to feel. Here is the same $50,000, repaid in 36 equal monthly payments, at points taken from the published ranges above. Fees are left out, so real APRs with fees would cost more.
| Rate | Where it comes from | Monthly payment | Total interest |
|---|---|---|---|
| 6.37% | Low end of bank averages [1] | $1,529.49 | $5,061.76 |
| 10.98% | High end of bank averages [1] | $1,636.46 | $8,912.64 |
| 13.5% | SBA 7(a) cap for $50,000 or less [2] [3] | $1,696.76 | $11,083.52 |
| 14% | Low end of online term loans [1] | $1,708.88 | $11,519.73 |
| 45% | High end of equipment financing [1] | $2,553.53 | $41,927.09 |
| 99% | High end of online loans and lines [1] | $4,377.23 | $107,580.24 |
The first four rows sit within about $6,500 of each other over three years. The jump comes when a file falls from the bank and SBA tier into the upper half of online pricing. That is why the bar you clear often matters more than which lender you pick inside a tier. Try other amounts and terms in the loan payment calculator.
Fees that push the APR above the rate
A quoted rate can leave out fees that the APR includes. NerdWallet lists the common ones [1]:
- Origination fee: an upfront charge for processing a new loan.
- Underwriting fee: for reviewing and verifying your documents.
- Closing costs: such as loan packaging, a real estate appraisal or a business valuation.
- SBA guarantee fee: typically 0.25% to 3.75% of the loan, based on its size, reset by the SBA each fiscal year.
A fee taken out of the money you receive works like extra interest. Our example: $10,000 at 10% repaid monthly over one year costs $879.16 a month. If a 3% fee is deducted so you receive $9,700, the same payments work out to an APR of about 15.8%, not 10%, because you pay interest on money you never got. Ask whether each fee is paid in cash or deducted from the amount funded.
What moves your rate up or down
- Lender type. Banks usually charge the least but have the strictest bar; online lenders are more flexible and cost more [1].
- Product. Loans backed by the SBA often carry the best rates [1]. Short, fast products cost the most.
- The Federal Reserve. When the Fed raises rates, business loan rates, including SBA 7(a) rates, tend to rise too [1]. Variable-rate loans move with prime after you sign.
- Your file. Credit score, time in business, revenue and collateral all feed the price. See business loan requirements.
- Term and amount. A shorter term means a bigger payment but less total interest. SBA caps are higher for smaller loans.
If you have a quote and want to know where it sits, Batch Capital, our funding team, can compare it with what your file is likely to qualify for elsewhere, in dollars and APR.