Over the last few months, something meaningful has shifted in the SBA lending market—and most business owners haven’t noticed yet. Prime has fallen back below 7%, and that single move is reopening pricing we haven’t seen in a long time.
For profitable businesses with solid credit, unsecured SBA 7(a) loans are now landing in the 9.25%–9.75% range. That’s ten-year money, no real estate required, at a rate that finally competes with traditional bank debt again. For businesses that still qualify but are underwriting-light—minimal or no profit, streamlined reviews—we’re seeing pricing closer to 11.00%–11.25%. Still long-term, still unsecured, and still dramatically cheaper than most short-term alternatives.
The bigger point: the math works again. Lower monthly payments, more breathing room, and capital that can be used strategically instead of defensively. This doesn’t mean everyone qualifies—lenders are selective—but it does mean SBA financing is back in play for far more businesses than it was a year ago.
If you wrote off SBA loans when rates spiked, it’s worth revisiting. At Irving Fund, we help business owners understand where they actually fall on that spectrum before they waste time chasing the wrong option.
