The index

SBA borrowing cost doubled in three years, then eased

Average initial interest rate at approval, SBA 7(a), FY2010–FY2025. Shaded band shows the 10th to 90th percentile.

FY2021 was the cheapest year in the series at 5.50%; FY2024 the most expensive at 11.12%. Note the band: the spread between a cheap loan and an expensive one widened from 225 basis points in FY2021 to 465 in FY2024. Dispersion rose with the level.

5.50%FY2021 — cheapest year in the series

11.12%FY2024 — the peak

10.24%FY2025 average

Source: Analysis of SBA 7(a) FOIA loan-level data (as of 31 March 2026). Initial interest rate as recorded at approval; 86.6% of loans carry variable terms and the rate paid has moved since. Cancelled approvals excluded. Published by sba-feasibility-study.com.