If you’re a small business owner considering an SBA loan, staying updated on interest rates is crucial. The SBA Max Allowed Fixed Rates determine the maximum interest rates lenders can charge on SBA-backed loans, directly impacting borrowing costs for entrepreneurs.
For March 2025, the fixed rates have remained unchanged from February 2025, reflecting a period of stability in SBA loan pricing. Below, we’ll compare these rates with previous months and discuss what it means for small business owners.
1. SBA Max Allowed Fixed Rates – March 2025
| Loan Amount | March 2025 (%) | February 2025 (%) | Change |
|---|---|---|---|
| Above $250,000 | 12.50% | 12.50% | No Change |
| $50,000 – $250,000 | 13.50% | 13.50% | No Change |
| $25,000 – $50,000 | 14.50% | 14.50% | No Change |
| $25,000 or less | 15.50% | 15.50% | No Change |
| Prime Rate (Base Rate) | 7.50% | 7.50% | No Change |
Source: FTA WiKi
2. Rate Trends & Comparison to Previous Months
2.1. Stability in Rates Since January 2025
The March 2025 SBA loan rates remain unchanged from January and February 2025, reflecting stability in the Prime Rate, which continues to hold at 7.50%. This is good news for borrowers, as rates are lower than the latter half of 2024, when the Prime Rate peaked at 8.50% (July-September 2024).
2.2. Lower Rates Compared to Late 2024
Compared to November and December 2024, the current SBA loan rates are lower:
- November 2024: Prime Rate 8.00% → Max Fixed Rates were 13.00% – 16.00%
- December 2024: Prime Rate 7.75% → Max Fixed Rates were 12.75% – 15.75%
- March 2025: Prime Rate 7.50% → Max Fixed Rates 12.50% – 15.50%
2.3. What This Means
- SBA loans are now more affordable than in late 2024, meaning lower monthly payments for new borrowers.
- If the Prime Rate remains stable, these SBA loan rates may continue into the second quarter of 2025.
3. What This Means for Small Business Borrowers
3.1. Now is a Good Time to Secure SBA Loans
If you’re planning to finance a business expansion, purchase equipment, or invest in real estate, the current rates are more favorable than late 2024.
3.2. Watch for Potential Changes in Prime Rate
While the Federal Reserve has paused interest rate hikes, economic shifts could impact rates later in 2025. If inflation rises again, the Fed may increase rates, causing SBA loan rates to climb back up.
3.3. Compare SBA Loan Offers from Different Lenders
Even though the SBA sets the max allowed fixed rates, individual lenders may offer different terms, fees, and conditions. It’s essential to shop around and negotiate the best deal.
4. Should You Apply for an SBA Loan Now?
4.1. Consider applying now if:
- You need funding for business expansion or working capital
- You want to lock in relatively lower rates before potential increases
- Your business meets SBA loan eligibility requirements
4.2. It may not be the best time if:
- You don’t urgently need capital and prefer to wait for potential rate drops
- Your business isn’t ready for long-term financing commitments
4.3. Next Steps:
🔗 Check SBA Loan Eligibility: SBA Loan Programs
🔗 Find an SBA Lender: SBA Lender Match
5. Final Thoughts: Take Advantage of Stable SBA Rates
The March 2025 SBA loan rates remain stable at 12.50% – 15.50%, offering better borrowing conditions than late 2024. If you’re considering an SBA loan, now may be a great time to apply before any potential rate changes later in the year.
