The quick read: Prime held at 7.00% through October 2026, while the 5-year and 10-year Treasury yields each fell 0.31 points, from 5.09% and 5.29% on September 30 to 4.78% and 4.98% on October 29, according to FRED. The Federal Open Market Committee's October 28, 2026 statement opens: "The Committee decided to maintain the target range for the federal funds rate at 3-3/4 to 4 percent, in support of the Federal Reserve's dual mandate." Variable 7(a) loans priced off prime therefore had no new base-rate change to pass through in October. The October 504 debenture priced on 10/08/26, when the 10-year yield stood at 5.22%, per SBA's funding schedule and FRED. The 504 first lien moved only if its own note floats.
How did each SBA rate basis move in October 2026?
Prime, the base rate most variable 7(a) loans use, stayed at 7.00% from September 30 through October 29, 2026, while the 10-year Treasury yield SBA pegs the 504 debenture to fell from 5.29% to 4.98% and the 5-year yield fell from 5.09% to 4.78%, according to FRED. The table prints each level with its observation date.
No series had posted an October 30 observation when this record was read on November 2, 2026. FRED's prime series ends at October 27 and its Treasury series at October 29, and the Fed's H.15 release dated October 30 prints prime at 7.00% on both October 28 and October 29, so the table uses the latest posted day.
| Program piece | Rate basis as SBA states it | FRED series | 2026-09-30 | Latest posted | October change | When it resets |
|---|---|---|---|---|---|---|
| Program piece 7(a) variable | Rate basis as SBA states it Base rate (prime or optional peg rate) plus a spread SBA caps | FRED series DPRIME | 2026-09-30 7.00% | Latest posted 7.00% (2026-10-27) | October change 0.00 points | When it resets Per the note, no more often than monthly |
| Program piece 7(a) fixed | Rate basis as SBA states it Negotiated fixed rate, subject to SBA's published maximum | FRED series DPRIME | 2026-09-30 7.00% | Latest posted 7.00% (2026-10-27) | October change 0.00 points | When it resets Fixed at closing |
| Program piece 504 CDC debenture portion | Rate basis as SBA states it Pegged to an increment above the 10-year Treasury rate | FRED series DGS10 | 2026-09-30 5.29% | Latest posted 4.98% (2026-10-29) | October change -0.31 points | When it resets Fixed at the monthly debenture pricing date |
| Program piece 504 first-lien portion | Rate basis as SBA states it Priced by the participating lender | FRED series DGS5 or DPRIME, per the note | 2026-09-30 5.09% / 7.00% | Latest posted 4.78% (2026-10-29) / 7.00% (2026-10-27) | October change -0.31 / 0.00 points | When it resets As the lender's note says |
The October tape behind those columns, each level read from its source with its date:
Bank prime loan rate, FRED DPRIME (2026-09-30): 7.00%
Bank prime loan rate, FRED DPRIME (2026-10-01, first business day of October): 7.00%
Bank prime loan rate, FRED DPRIME (2026-10-27): 7.00%
Bank prime loan rate, Fed H.15 (2026-10-28 and 2026-10-29): 7.00%
10-year Treasury, FRED DGS10 (2026-10-05, October high): 5.31%
10-year Treasury, FRED DGS10 (2026-10-08, October 504 pricing date): 5.22%
10-year Treasury, FRED DGS10 (2026-10-22, October low): 4.96%
10-year Treasury, FRED DGS10 (2026-10-27, 2026-10-28, 2026-10-29): 4.99%, 5.05%, 4.98%
5-year Treasury, FRED DGS5 (2026-10-27, 2026-10-28, 2026-10-29): 4.82%, 4.85%, 4.78%
The SBA 504 and 7(a) rates page explains each rate basis in full; this page is the dated October record for owner-user SBA loans.
What did the October 28 Fed decision change for SBA borrowers?
The October 28, 2026 FOMC decision left the federal funds target range at 3-3/4 to 4 percent, and prime stayed at 7.00% on October 28 and October 29, per the Fed's H.15 release. Variable 7(a) loans therefore had no base-rate step to absorb from the Fed in October, unlike September's quarter-point increase.
The statement was approved by a 10 to 2 vote. According to the statement, Lisa D. Cook and Beth M. Hammack voted against the action and "preferred to raise the target range for the federal funds rate by 1/4 percentage point at this meeting." The majority held. For an SBA borrower, the practical reading is narrow: prime did not move, so no prime-indexed note had a new change to pass through.
Treasury yields are a different matter. They moved on the market's own schedule all month, rising to a 5.31% October high for the 10-year on October 5 and falling to 4.96% on October 22, per FRED. That matters for 504 loans still waiting for a debenture sale and for first liens indexed to Treasuries. The September 2026 record covers the hike that took prime to 7.00%.
Variable 7(a) rates follow prime on the note's schedule
A variable 7(a) rate moves only when its base rate moves, on the schedule in the loan note, and SBA's rule at 13 CFR 120.214 allows changes no more often than monthly, using the base rate in effect on the first business day of the month, so October brought no new base-rate step for these loans.
The regulation sets the mechanics. The first change may come on the first calendar day of the month after initial disbursement, and later changes no more often than monthly. It also says the amount of fluctuation "shall be equal to the movement in the base rate," so the spread itself does not change at a reset. FRED shows prime at 7.00% on October 1, 2026, the first business day of October, which already carried September's quarter point; a monthly note that adjusted on October 1 picked that up, and nothing newer followed through October 29.
SBA caps the spread over the base rate by loan size. Its terms page says 7(a) rates are "subject to SBA maximums, which are pegged to the prime rate or an optional peg rate," and prints the maximum variable rates this way:
$50,000 or less: base rate plus 6.5%
$50,001 to $250,000: base rate plus 6.0%
$250,001 to $350,000: base rate plus 4.5%
Greater than $350,000: base rate plus 3.0%
Those are ceilings, not quotes. Your own spread, adjustment frequency and any floor or ceiling are in your note, and the lender sets them within SBA's limits.
How was the October 2026 SBA 504 debenture priced?
The October 2026 504 debenture was priced on 10/08/26 under SBA's 2026 funding schedule, when FRED's 10-year Treasury yield stood at 5.22%, and SBA pegs the debenture rate to an increment above the 10-year Treasury rate, so the later October decline in yields reached only loans waiting for a later sale.
SBA Information Notice 5000-869666 publishes the calendar. It defines the pricing date as "the date that the 504 debenture rates are set," lists 10/08/26 as the October pricing date with funding on 10/14/26, and lists 11/05/26 as the November pricing date with funding on 11/10/26. SBA's 504 page describes the rate as "Pegged to an increment above the current market rate for 10-year U.S. Treasury issues."
Between the October pricing date and October 29, the 10-year yield fell from 5.22% to 4.98% on FRED, a 0.24-point decline. A debenture that sold on 10/08/26 keeps its rate; a 504 loan scheduled for the November sale carries Treasury risk until 11/05/26. The notice also sets a pulled-loan deadline: a loan may be withdrawn from a scheduled sale until close of business the Monday before the pricing date. The October debenture rate itself is not printed on any source this page cites, so ask your CDC for the rate on your debenture and the effective rate after fees.
The 504 first lien moves only if its note floats
The first-lien portion of a 504 project is priced by the participating lender under its own note, so in October it moved only if that note floats off an index, and the two indexes in this page's table went different ways: prime held at 7.00% while the 5-year Treasury fell 0.31 points.
A first lien priced off prime saw no change in October. One priced off a 5-year Treasury reflects a base that fell from 5.09% on September 30 to 4.78% on October 29, per FRED, though the lender still sets the spread. A fixed first lien that already closed is unchanged.
The same logic covers fixed 7(a) loans. A fixed 7(a) loan that closed before October kept its rate, because a fixed rate is set at closing. For one not yet closed, SBA's terms page says it "publishes the maximum fixed interest rates on SBA's FTA wiki," so confirm with the lender which maximum applies on your closing date. The SBA 504 vs 7(a) comparison covers which program fits an owner-occupied purchase.
Did SBA loan fees change in October 2026?
SBA's fiscal year 2027 fee notices for the 7(a) and 504 programs each print an effective date of October 1, 2026, so October was the first month under the new fee schedules, and the fee amounts and who pays each one are set out on our fiscal year 2027 fee page rather than restated here.
Both notices sit on sba.gov: Information Notice 5000-881797 for 7(a) program fees and Information Notice 5000-881796 for 504 program fees, each last updated September 3, 2026. Fees are separate from rates, but both feed the total cost of an SBA loan. The FY2027 SBA fee breakdown lists every 7(a) and 504 fee and how it changed.
Should an owner-user lock an SBA 504 or take a variable 7(a) this quarter?
Choosing between a 504 debenture fixed at its monthly sale and a variable 7(a) that follows prime is a choice between locking a Treasury-based rate on a known date and accepting monthly prime resets, and no published source on this page says where prime or Treasury yields go next. Compare both structures on your own property.
Three ways to get that comparison, with the brokerage route first:
- A commercial mortgage brokerage. YieldStack is an AI-native commercial mortgage brokerage that arranges financing for commercial real estate investors. Its deal team matches the deal against 20,000+ loan programs, typically surfacing 5–8 matches, negotiates spread and term on the borrower's side, and returns a median first offer in under an hour, from an institutional lender. It costs Zero upfront to submit a deal and review offers; YieldStack's broker fee is 0.50–1.00% of the loan amount and is paid only at closing.
- Going direct to one SBA lender. You see that lender's spread, index and adjustment terms, and the comparison across lenders is your own work.
- Working with a CDC on a 504 loan. The CDC handles the debenture portion; the first lien still needs its own lender and pricing.
Every credit decision is made by the lender; no loan, rate, or closing is guaranteed. To compare a 504 and a 7(a) structure on your building, submit your SBA purchase for review.
The bottom line
October 2026 left prime at 7.00% after the Fed held its target range at 3-3/4 to 4 percent, so variable 7(a) loans saw no new base-rate change. The October 504 debenture priced on 10/08/26 with the 10-year Treasury at 5.22%, and the yield finished the posted month at 4.98% on October 29. First liens follow their own notes, and FY2027 SBA fees took effect October 1, 2026.