Business Loan Rates 2026: Current Rates by Loan Type and Lender
Business loan rates in November 2026 run from about 7% at a bank to well over 50% APR at fast online lenders, and that gap is mostly about who qualifies, not who is cheaper. As of November 11, 2026 the prime rate is 7.00%. The median rate on new variable-rate small business term loans at banks was 6.7% to 7% in the second quarter of 2026, SBA 7(a) variable rates are capped at 10.0% to 13.5% depending on loan size, OnDeck reports an average of 53.2% APR on its term loans, and merchant cash advances are priced with factor rates that start around 1.11 rather than an interest rate.
Every number on this page comes from a public source we checked in November 2026: the Federal Reserve, the U.S. Small Business Administration (SBA), the Federal Reserve Bank of Kansas City, and lenders' and funders' own websites. Each one is listed in the references with its date. Byzfunder publishes this guide and appears in the lender table, and we do not quote our own pricing as a number because every Byzfunder offer is priced on the file in front of us.
- Prime is 7.00% as of November 11, 2026, and most bank and SBA rates are built on top of it
- Bank medians sit near 7%, SBA 7(a) variable caps run 10.0% to 13.5%, online lender averages run above 50% APR
- MCAs use a factor rate and RBF uses a repayment cap, so compare total payback and estimated APR side by side
- Your credit score, time in business and monthly deposits decide which row of the table you can actually use
Business loan rates today: November 2026 snapshot
If you searched for current business loan rates or business loan interest rates today, this is the table. Ranges are ranges, not quotes. Your offer depends on your file.
| Product | Current rate or cost (published) | How the cost is expressed | Source and date |
|---|---|---|---|
| Prime rate (the base most banks use) | 7.00% | Annual interest rate | Federal Reserve H.15, Nov 11, 2026 |
| Bank term loan, variable rate | 6.7% to 7% median | Interest rate (prime-based) | Kansas City Fed, Q2 2026, released Sep 24, 2026 |
| SBA 7(a) loan, variable rate | 10.0% to 13.5% maximum | Prime + 3.0% to 6.5% | SBA.gov, at 7.00% prime |
| SBA microloan | Generally 8% to 13% | Interest rate | SBA.gov |
| Line of credit (best tier, online) | As low as 7.8% | Rate on drawn balance | Bluevine, Nov 2026 |
| Online term loan (average) | 53.2% APR | APR including fees | OnDeck, loans from H1 2026 |
| Online line of credit (average) | 59.8% APR | APR including fees | OnDeck, loans from H1 2026 |
| Marketplace line of credit range | 8% to 60% | Interest rate | Lendio, Nov 2026 |
| Merchant cash advance | Factor rates from 1.11; commonly cited 1.10 to 2 | Factor rate on the amount advanced | Credibly, Nov 2026; Bankrate, Aug 2025 |
| Revenue-based financing (SaaS-style) | Repayment cap 1.3x to 1.5x | Multiple of funded amount | Lighter Capital, Nov 2026 |
Two things stand out. The cheapest products are tied to prime, so they move when the Federal Reserve moves. And the last two rows are not interest rates at all: a factor rate or a repayment cap tells you the total payback, and you need the payback timeline to turn it into an APR you can compare. We cover that below.
What is the average business loan interest rate?
There is no single average business loan interest rate, because the average depends on which lenders you count. Two published figures from 2026 show how far apart the answers can be.
- Banks: The Kansas City Fed's Small Business Lending Survey reported median rates on new variable-rate term loans of 7% at urban banks and 6.7% at rural banks in the second quarter of 2026. The survey covers lending to businesses with less than $5 million in annual revenue. That data predates the Federal Reserve's quarter-point increase on September 16, 2026, so new bank quotes today may sit slightly higher.
- Online lenders: OnDeck publishes its own averages. Its term loans averaged 53.2% APR and its lines of credit averaged 59.8% APR for loans originated in the half-year ending June 30, 2026. OnDeck also charges an origination fee of 0% to 4% on term loans, which is part of why its APR is higher than a headline interest rate.
Both figures are accurate. They describe different businesses. A bank median reflects files that cleared bank underwriting: usually strong credit, several years of tax returns and collateral. An online lender average reflects businesses that wanted speed or did not fit a bank's box. If you are asking "what is the average small business loan interest rate for a business like mine," the honest answer is: find the row of the snapshot table you actually qualify for, then compare offers within that row.
Business loan rates by lender: who publishes what
Most comparison pages list rates without saying where they came from. Here is what each provider publishes on its own website as of November 2026. Where a provider does not publish a rate, we say so instead of guessing.
How we built this table
We included providers small businesses commonly compare: SBA lenders, online lenders, marketplaces and revenue-based funders. For each we recorded the published rate or cost, how it is expressed, and the minimum credit score and eligibility rules, taken only from that company's own site or the SBA. Nothing is ordered by advertising or partnerships, and Byzfunder's entry follows the same rule.
| Provider | Product | Published rate or cost | Min credit (published) | Other published minimums |
|---|---|---|---|---|
| Byzfunder | MCA, ByzFlex, Term Loan (via Byzwash) | Priced per file; total cost disclosed in the offer | 525 (MCA), 550 (ByzFlex) | Based on deposits and file |
| Credibly | Merchant cash advance | Factor rates as low as 1.11; terms 3 to 24 months | 550 | 6 months in business, $20,000 average monthly revenue |
| Forward Financing | Revenue-based financing | Not published | 500+ | 1 year in business, $10,000 monthly revenue |
| OnDeck | Term loan, line of credit | Average 53.2% APR (term), 59.8% APR (line); origination fee 0% to 4% | 625 | 1 year in business, $100,000 annual revenue |
| Bluevine | Line of credit | As low as 7.8% for top qualifying customers | 625 | 12 months in business, $10,000 monthly revenue |
| National Funding | Small business loans, equipment financing | Not published | Most customers 600+ | Not published on the FAQ |
| American Express Business Line of Credit | Installment loans | Total loan fee 3% to 9% (6-month) or 6% to 18% (12-month) of the amount borrowed | Not published | Eligibility based on creditworthiness |
| Lendio (marketplace, not a lender) | Many lenders' products | Lines of credit 8% to 60%; short-term loans as low as 8% | Varies by lender | Varies by lender |
| SBA 7(a) lenders | Government-guaranteed loans | Variable maximum prime + 3.0% to 6.5% | Set by lender | SBA eligibility rules |
| SBA microlenders | Microloans up to $50,000 | Generally 8% to 13% | Set by intermediary | SBA eligibility rules |
| Lighter Capital | Revenue-based financing | Repayment cap 1.3x to 1.5x the funded amount | Not published | Not published on the FAQ |
A few notes on reading the table. Credibly, Forward Financing and Byzfunder's MCA are purchases of future receivables, priced with a factor rate, not loans priced with an interest rate. Byzfunder's ByzFlex is revenue-based revolving capital, which is a different structure from a bank line of credit; Bluevine's and OnDeck's lines are true lines of credit. American Express quotes a flat fee as a percentage of the amount borrowed, which is not the same thing as an annual rate. And Funding Circle, which used to show up on many U.S. rate lists, says on its own site that it no longer operates in the United States.
Want the deeper comparison of these providers on speed and requirements rather than rate alone? Our best small business loans 2026 guide ranks them.
SBA loan rates in 2026
SBA loans are usually the cheapest financing a small business can get, which is why searches like "what are the typical interest rates for SBA loans in 2026" are so common. The SBA does not set your rate. It sets a maximum the lender can charge, as a spread over a base rate that is usually prime.
These are the SBA's published maximum variable rates for 7(a) loans, applied to the 7.00% prime rate in effect in November 2026:
| 7(a) loan amount | Maximum variable spread | Maximum variable rate at 7.00% prime |
|---|---|---|
| $50,000 or less | Prime + 6.5% | 13.5% |
| $50,001 to $250,000 | Prime + 6.0% | 13.0% |
| $250,001 to $350,000 | Prime + 4.5% | 11.5% |
| More than $350,000 | Prime + 3.0% | 10.0% |
Fixed-rate 7(a) maximums are higher and are published separately by the SBA, so ask your lender for the fixed-rate cap that applies on the day you lock. SBA microloans, which go up to $50,000 through nonprofit intermediaries, generally carry rates between 8% and 13%. SBA 7(a) loans can also carry upfront guarantee and lender fees, so compare the full cost, not just the rate.
The tradeoff is time and paperwork. SBA lenders review tax returns, financial statements and often collateral, and the process typically takes weeks. If your business needs capital this week, or a bank has already declined you, the SBA rate is not the rate available to you.
Short-term business loan interest rates
Short-term business loan rates are higher than bank rates for three reasons: the lender is underwriting faster, often on fewer documents; the money comes back over months rather than years, so fees weigh more heavily in the APR; and short-term products serve more businesses that a bank would decline.
Published examples from November 2026:
- OnDeck term loans averaged 53.2% APR for loans originated in the first half of 2026.
- Lendio lists short-term loans through its marketplace starting as low as 8%, and lines of credit from 8% to 60%.
- American Express charges a total loan fee of 3% to 9% of the amount borrowed for 6-month installment loans and 6% to 18% for 12-month loans.
A flat fee and an APR are not the same thing. A 6% fee on a 6-month loan works out to a much higher annual rate than 6%, because you pay it over half a year while paying down the balance. That is the same math that applies to factor rates.
How to compare an APR with a factor rate
This is where most rate comparisons go wrong. An interest rate charges you for time: the longer you hold the money, the more you pay. A factor rate sets the total payback up front. A merchant cash advance (MCA) is a purchase of a share of future receivables, priced with a factor rate, not a loan priced with an interest rate. That does not mean the cost can't be compared. It means you have to compare it correctly.
Step 1: Turn every offer into total dollars. Multiply the amount by the factor rate. A $50,000 advance at a 1.30 factor rate means $65,000 total payback, so the cost of capital is $15,000.
Step 2: Find the payback timeline. Ask how long the payments are expected to last. The same $15,000 cost means very different things over six months and over twelve.
Step 3: Calculate an estimated APR. Here is the math for that $50,000 at a 1.30 factor rate, paid back in equal weekly payments:
| Payback period | Total cost | Estimated APR |
|---|---|---|
| 26 weeks | $15,000 | About 107% |
| 52 weeks | $15,000 | About 54% |
For comparison, a 12-month amortizing loan of $50,000 at 53.2% APR (OnDeck's published term loan average) costs about $15,500 in interest before fees, close to the 52-week example above. The same loan at 13.5% (the top SBA cap for small 7(a) loans) costs about $3,700, and at 10% about $2,750.
Step 4: Ask for the disclosure. California and New York require providers of many commercial financing offers to give a standardized disclosure that includes an estimated APR, and other states have passed similar rules. Wherever you are, ask for the total payback, the payment amount and frequency, the expected term and an estimated APR in writing before you sign.
The point of this exercise is not that one structure always wins. It is that a factor rate looks small (1.30 sounds like 30%) and an APR looks large, and neither number tells you the cost until you add the timeline. For more detail, see our guide to factor rate vs. APR and our breakdown of revenue-based financing rates.
Business loan rate calculator: run your own numbers
You can check any offer with the calculator above, or by hand:
- Interest-rate loan: monthly payment = amount x (r / 12) / (1 - (1 + r / 12)^-months), where r is the annual rate as a decimal. Multiply the payment by the number of months and subtract the amount to get total interest. Add any origination fee.
- Factor rate: total payback = amount x factor rate. Divide by the expected number of payments to get each payment. Then compare the total cost and the payment against what your slowest month can carry.
- Repayment cap (RBF): total payback = funded amount x cap. With revenue-based payments, the timeline stretches if revenue slows, which lowers the effective annual rate but keeps you paying longer.
What moves your business loan rate
The rate you are quoted is built from a base rate plus a spread for risk. These are the factors that move the spread, and in many cases decide which product you can get at all.
- The base rate. Most bank and SBA loans are priced off prime, which banks conventionally set at the top of the federal funds target range plus 3 percentage points. The Federal Reserve held its target range at 3.75% to 4.00% on October 28, 2026, after raising it a quarter point on September 16. Variable-rate loans move when prime moves; fixed-rate loans lock at signing.
- Credit score. Personal credit is often a hard gate before it is a price adjustment. Published minimums in our table range from 500 to 625.
- Time in business. Many lenders require 6 months to a year, and banks usually want two years or more. Operating history is priced separately from credit.
- Revenue and deposits. Online lenders and revenue-based funders underwrite heavily on bank deposits. Published floors range from $10,000 to $20,000 a month for the providers above.
- Collateral. Secured loans, such as equipment financing or SBA loans backed by real estate, usually price lower than unsecured financing.
- Term length. Shorter terms concentrate fees into fewer months, which raises the APR even when total dollar cost is modest.
- Industry. Lenders price historical default risk by industry before looking at your specific file.
- Existing obligations. Other loans or advances against the same revenue raise risk and can lower the amount you qualify for.
Business loan rates by credit score
People search for "rate ladders" by credit score, so here is what the published minimums tell you. We do not attach a specific rate to a score, because no lender above publishes one and your rate depends on all the factors listed earlier.
| Personal credit score | Products whose published minimum you meet |
|---|---|
| 700 and above | Banks and SBA lenders are realistic if your time in business and cash flow also qualify; best-tier online pricing such as Bluevine's lowest rates goes to the strongest profiles |
| 625 to 699 | OnDeck and Bluevine published minimums; SBA lenders set their own floors |
| 600 to 624 | National Funding (most customers 600+), Credibly, Forward Financing, Byzfunder MCA and ByzFlex |
| 550 to 599 | Credibly MCA (550), Byzfunder ByzFlex (550) and MCA (525), Forward Financing (500+) |
| 525 to 549 | Byzfunder MCA (525), Forward Financing (500+) |
| 500 to 524 | Forward Financing (500+), which says it may rarely extend eligibility outside its criteria |
Meeting a minimum is necessary, not sufficient. Every provider reviews the full file.
Where Byzfunder fits
Byzfunder is a direct lender that has provided $2 billion to more than 35,000 businesses since 2019, funding from its own balance sheet. It is built for the businesses in the lower half of the credit table above: open, earning, depositing revenue every week, and declined or slowed down by a bank.
- Merchant cash advance: a lump sum in exchange for a share of future receivables, priced with a factor rate. Credit floor 525.
- ByzFlex: revenue-based revolving capital that you can access again as you repay. It is not a line of credit. Credit floor 550.
- Term Loan: advertised by Byzfunder and provided through its affiliate Byzwash, for businesses that want a fixed repayment schedule.
Amounts depend on your deposits and your file, and approvals can come the same day. Before you sign, ask for the total payback, payment schedule and expected term, and run them through the comparison steps above against any bank, SBA or online offer you have. If you qualify for a bank loan at 7% and can wait, take it. If you can't, compare total dollars and timeline, not the headline number.
Frequently asked questions
What are current business loan rates today?
As of November 2026, the prime rate is 7.00%. Bank term loans for small businesses had a median variable rate of 6.7% to 7% in Q2 2026, SBA 7(a) variable rates are capped between 10.0% and 13.5%, and online lenders such as OnDeck report average APRs above 50%. Merchant cash advances use factor rates, with published starting points around 1.11.
What is a typical interest rate for a small business loan?
For a bank loan, roughly 7% is typical for strong borrowers in 2026, based on the Kansas City Fed's median data. For an SBA 7(a) loan, expect up to 10.0% to 13.5% depending on size. For a fast online term loan, typical APRs are much higher, and OnDeck's published average is 53.2% APR.
What are typical SBA loan rates in 2026?
SBA 7(a) variable rates are capped at prime plus 3.0% to 6.5%, which is 10.0% to 13.5% with prime at 7.00%. Your actual rate can be lower; the SBA sets the ceiling, not the rate. SBA microloans generally run 8% to 13%.
What is a good interest rate on a business loan?
Anything near the bank median (about 7%) is excellent and usually requires strong credit, two or more years in business and solid financials. Within SBA's caps is a good outcome for most small businesses. For online and revenue-based financing, a good offer is one whose total payback and payment your slowest month can still cover.
Are business loan rates going up or down?
The Federal Reserve raised its target range by a quarter point on September 16, 2026 and held it at 3.75% to 4.00% on October 28, 2026, so prime is 7.00%. The next scheduled meeting is in December. We do not forecast rates; if your loan is variable, plan for the payment to move with prime.
Do factor rates and APRs measure the same thing?
No. A factor rate sets the total payback on an advance, while an APR expresses cost per year. You can convert a factor rate into an estimated APR once you know the payback timeline, and some states, including California and New York, require an estimated APR in the disclosure for many commercial financing offers.
How do credit score and revenue affect business loan rates?
Credit score usually decides whether a bank or SBA lender will approve you at all, and then moves the spread over prime. Revenue and deposits matter most to online lenders and revenue-based funders, which publish monthly revenue minimums from $10,000 to $20,000. Stronger numbers on both open cheaper products.
Does checking business loan rates hurt my credit?
It depends on the provider. OnDeck, Credibly and Forward Financing say on their sites that checking eligibility uses a soft inquiry on your personal credit, which does not affect your personal score. Forward Financing also says it runs a hard pull on business credit, and some products and final approvals elsewhere can involve a hard pull. Ask each provider before you apply.
The bottom line on business loan rates in 2026
Business loan rates in 2026 run from about 7% at banks to SBA caps of 13.5% and online averages above 50% APR. The way to compare any of them is the same: total dollars, payback timeline, estimated APR, and whether the payment fits your slowest month. For a broader view of terms and repayment structures, see our guide to small business loan terms and rates.
If a bank has said no or can't move fast enough, Byzfunder funds open businesses directly, with credit floors of 525 for the MCA and 550 for ByzFlex. Every offer depends on your file, and meeting the minimums does not guarantee approval. See what your business qualifies for.
References
- Board of Governors of the Federal Reserve System, Selected Interest Rates (H.15), bank prime loan rate, accessed Nov 13, 2026. federalreserve.gov
- Federal Reserve, FOMC statement, Oct 28, 2026. federalreserve.gov
- Federal Reserve, FOMC statement, Sep 16, 2026. federalreserve.gov
- Federal Reserve Bank of Kansas City, Small Business Lending Survey, Q2 2026, released Sep 24, 2026. kansascityfed.org
- U.S. Small Business Administration, 7(a) terms, conditions and eligibility (maximum interest rates). sba.gov
- U.S. Small Business Administration, Microloans. sba.gov
- OnDeck, Term loans and FAQ (average APRs for loans originated in the half-year ending June 30, 2026). ondeck.com
- Bluevine, Line of credit. bluevine.com
- Credibly, Merchant cash advance. credibly.com
- Forward Financing, FAQ. forwardfinancing.com
- National Funding, Small business loans and FAQ. nationalfunding.com
- American Express, Business Line of Credit pricing. americanexpress.com
- Lendio, Business loans. lendio.com
- Lighter Capital, FAQ (repayment cap). lightercapital.com
- Bankrate, What is a factor rate and how to calculate it, Aug 27, 2025. bankrate.com
- Funding Circle, U.S. site notice. fundingcircle.com