The quick read: The SBA 504 debenture rate is pegged to an increment above the 10-year Treasury, which read 4.94 percent on October 30, 2026, per FRED, plus roughly 3 percent in fees that can be financed into the loan. The SBA 7(a) program caps variable rates at a base rate, prime or an optional peg rate, plus a spread SBA publishes by loan size; for applications SBA receives in November 2026, SBA's rule uses the prime in effect on November 2, and at the 7.00 percent prime FRED shows for October 27, 2026, those ceilings run from 10.00 percent on the largest loans to 13.50 percent on the smallest. SBA's program pages do not state a single current 504 debenture rate or a single 7(a) rate; each is a benchmark plus an add-on. Prime rose to 7.00 percent on September 17, 2026, the day after the Federal Reserve's September 16 rate increase, and stayed there after the Fed held its target range on October 28.
Worked example (illustrative, our arithmetic): an owner-occupant financing a building with an $800,000 SBA 504 debenture pays fees of approximately 3 percent, about $24,000, which can be financed into the loan. The same owner taking a $500,000 variable-rate 7(a) loan is in SBA's size tier above $350,000, capped at prime plus 3.0 percent: at the 7.00 percent prime FRED shows for October 27, 2026, that is a 10.00 percent ceiling, and at that ceiling a 25-year amortizing payment would be $4,543.50 a month. The 504 trades that variable ceiling for a fixed rate on the debenture, so ask the CDC for the rate its most recent debenture sale produced and the 7(a) lender for its spread over prime in writing.
As of: October 30, 2026 (FRED 10-year Treasury observation date)
504 benchmark: 10-year Treasury (FRED DGS10) at 4.94 percent
7(a) benchmark: Bank prime loan rate (FRED DPRIME) at 7.00 percent, as of October 27, 2026, and 7.00 percent on October 30 in the Federal Reserve's H.15 release; November 2026 applications are capped off the prime in effect on November 2, 2026
Policy backdrop: FOMC held the federal funds target range at 3-3/4 to 4 percent on October 28, 2026, by a 10-2 vote, after raising it by 1/4 percentage point on September 16, 2026
What this page is: a stable monthly page on how SBA 504 and 7(a) pricing is built, refreshed in place each month
How is the SBA 504 debenture rate set in November 2026?
SBA's 504 program page explains how the debenture rate is set rather than printing a monthly figure, so the mechanism is the verifiable November 2026 answer. Per SBA, the rate is "pegged to an increment above the current market rate for 10-year U.S. Treasury issues," and fees "total approximately 3% of the debt," financeable into the loan.
The benchmark half of that build is public. The 10-year Treasury constant maturity yield read 4.94 percent on October 30, 2026, according to the FRED DGS10 series. That is the rate the debenture's increment sits on top of. Neither the increment itself nor the exact debenture rate set at this month's pricing appears on SBA's own program page. This page states the mechanism and the benchmark that feeds it, and leaves the exact monthly debenture percentage to your CDC's rate sheet.
SBA does publish a 504 debenture funding schedule for calendar year 2026 with one pricing date each month, the date "the 504 debenture rates are set"; October's was October 8, 2026 (20- and 25-year debentures only; 10-year debentures sell in alternate months), when the 10-year Treasury read 5.22 percent on FRED; November's is November 5, 2026, and includes 10-year debentures; December's is December 10, 2026. Ask your CDC for the most recent pricing date and the exact rate it produced. A rate set at a past sale does not move with the Treasury; a figure built from today's Treasury is an estimate for the next scheduled sale, not a rate anyone has set.
What is the maximum SBA 7(a) interest rate right now?
SBA sets a ceiling on 7(a) variable rates as a spread over a base rate, and when that base is prime, November 2026 applications use the prime in effect on November 2. At FRED's 7.00 percent prime for October 27, the ceiling runs from 10.00% above $350,000 (prime plus 3.0%) to 13.50% at $50,000 or less (prime plus 6.5%).
SBA's terms-and-conditions page states these maximum spreads for variable-rate 7(a) loans: "$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%," and "Greater than $350,000: Base rate plus 3.0%." SBA pegs those maximums to "the prime rate or an optional peg rate," and separately publishes maximum fixed rates elsewhere.
Which prime applies is fixed by SBA's regulation, 13 CFR 120.214: "The prime rate will be that which is in effect on the first business day of the month," and the initial maximum is "determined as of the date SBA receives the loan application." The FRED Bank Prime Loan Rate series read 6.75 percent on September 1, 2026, then 7.00 percent on October 1, 2026, and on October 27, 2026, its latest observation; the Federal Reserve's H.15 release dated November 2 shows 7.00 percent on October 30, the last business day before November 2. Applying SBA's published spreads to the 7.00 percent and 6.75 percent levels produces these ceilings:
| Loan amount | Maximum spread over prime | Maximum rate at 7.00% prime (Oct 1 and Oct 27, 2026) | Maximum rate, September 2026 applications (6.75% prime, Sept 1) |
|---|---|---|---|
| Loan amount $50,000 or less | Maximum spread over prime Prime + 6.5% | Maximum rate at 7.00% prime (Oct 1 and Oct 27, 2026) 13.50% | Maximum rate, September 2026 applications (6.75% prime, Sept 1) 13.25% |
| Loan amount $50,001 to $250,000 | Maximum spread over prime Prime + 6.0% | Maximum rate at 7.00% prime (Oct 1 and Oct 27, 2026) 13.00% | Maximum rate, September 2026 applications (6.75% prime, Sept 1) 12.75% |
| Loan amount $250,001 to $350,000 | Maximum spread over prime Prime + 4.5% | Maximum rate at 7.00% prime (Oct 1 and Oct 27, 2026) 11.50% | Maximum rate, September 2026 applications (6.75% prime, Sept 1) 11.25% |
| Loan amount Greater than $350,000 | Maximum spread over prime Prime + 3.0% | Maximum rate at 7.00% prime (Oct 1 and Oct 27, 2026) 10.00% | Maximum rate, September 2026 applications (6.75% prime, Sept 1) 9.75% |
These are ceilings, not quotes. A lender can charge less than the maximum; the 7.00% column is the initial maximum on a variable-rate loan of that size for applications SBA received in October, off the October 1 prime, and it applies to November applications if the prime in effect on November 2 is still 7.00%. The September column shows the caps before the September 16 increase reached them.
What did the September 16 Fed rate hike change for SBA borrowers?
The Federal Reserve raised the federal funds target range by a quarter point on September 16, 2026, and FRED's prime series rose from 6.75% on September 16 to 7.00% on September 17. September's 7(a) caps and 504 debenture pricing were already set; October caps carried the step, and the October 8 sale was the first 504 pricing (20- and 25-year debentures) after it.
The FOMC's September 16 statement said the Committee "decided to raise the target range for the federal funds rate by 1/4 percentage point to 3-3/4 to 4 percent." Because 7(a) maximum rates are pegged to prime, the quarter-point step shows up in the table's 7.00% column, but SBA's rule takes the prime in effect on the first business day of the month, so the step reached the caps on applications SBA received in October, not the day after the meeting. On October 28, the Committee "decided to maintain the target range for the federal funds rate at 3-3/4 to 4 percent," by a 10-2 vote; Lisa D. Cook and Beth M. Hammack dissented, preferring to raise the range by 1/4 percentage point. The Fed's H.15 release shows prime at 7.00% on October 28, 29 and 30.
The 504 side moves differently. The 10-year Treasury is a market rate that reacts to the whole path of expected policy, not just the announcement itself, so it does not step in lockstep with the federal funds rate. FRED's DGS10 series shows 4.97% on September 14 and 5.00% on September 15, then 5.01% on September 16, 4.94% on September 17 and 5.01% on September 18, before reading 4.96% on September 21 and 22. Around the October 28 hold it read 4.99% on October 27, 5.05% on October 28, 4.98% on October 29 and 4.94% on October 30. SBA's funding schedule set September's debenture pricing for September 10, six days before the increase, so October's 20- and 25-year sale, priced October 8 with the 10-year at 5.22%, was the first 504 pricing after it; the November 5 sale, which includes 10-year debentures, is the first after the October 28 hold.
What is the owner-occupancy test for an SBA 504 loan?
An SBA 504 loan requires the small business itself, not a passive investor, to occupy most of the property, and the threshold depends on building type. An existing building needs at least 51% occupancy, with up to 49% leased; new construction needs 60%, plus a plan to occupy all space not permanently leased within ten years.
On new construction, the business must permanently occupy and use at least 60% of the rentable property, may permanently lease up to 20%, and must plan to occupy some of the remaining space within three years and all of it within ten years. On an existing building, the business must permanently occupy and use at least 51%, and may permanently lease out no more than the remaining 49%. Both tests come from SBA's regulation, 13 CFR 120.131, which applies to SBA financing "whether 7(a) or 504": a borrower on new construction "permanently occupies and uses no less than 60 percent of the Rentable Property," and on an existing building "no less than 51 percent."
This test is a structural eligibility rule, not a rate, and it does not change month to month the way the benchmark does. It matters here because it is the gate a deal has to clear before either program's pricing is relevant: a building that fails the occupancy test is not 504-eligible regardless of where the 10-year Treasury sits. For the fuller comparison of when 504 fits against 7(a) on occupancy and use of proceeds, see SBA 504 vs 7(a): owner-occupied commercial real estate.
SBA 504 vs 7(a): rates, fees and terms side by side
SBA 504 and 7(a) loans price differently because they solve different problems: the 504 is fixed-rate, long-term financing for owner-occupied real estate and major equipment, while the 7(a) is a more flexible fixed- or variable-rate loan that can also fund working capital and business acquisition. The table below compares pricing, costs and terms.
| Program | Rate basis | Current anchor | Fees | Term |
|---|---|---|---|---|
| Program SBA 504 | Rate basis Fixed; CDC/SBA debenture priced off an increment above the 10-year Treasury | Current anchor 10-year Treasury: 4.94% (FRED DGS10, Oct 30, 2026) | Fees Approximately 3% of the debenture, financeable into the loan | Term Debenture terms of 10, 20 or 25 years, per the SBA's 504 page |
| Program SBA 7(a) | Rate basis Fixed or variable; variable loans capped at the base rate (prime or an optional peg rate) plus an SBA-published spread | Current anchor Prime: 7.00% (FRED DPRIME, Oct 27, 2026); November 2026 applications capped off the prime in effect on Nov 2 | Fees SBA upfront guaranty fee, paid by the lender, which SBA permits it to pass on to the borrower; SBA publishes the amount each fiscal year | Term Up to 25 years including extensions; ten years or less unless it finances real estate or equipment with a useful life over ten years, per the SBA's 7(a) terms page |
The structural difference matters more than the rate comparison on its own. A 504 loan cannot fund working capital or a business acquisition; a 7(a) loan can, and trades some rate certainty for that flexibility. Program mechanics, eligibility rules and use-of-proceeds limits for both sit under YieldStack's SBA loan programs page, with term definitions at the 504 glossary entry and the 7(a) glossary entry.
How do you get lenders competing for this SBA loan?
You get lenders competing for an SBA 504 or 7(a) loan by putting one complete deal package in front of several CDCs and 7(a) lenders at once, so each prices the same project against the same benchmark on the same day instead of you shopping it serially. A single-lender process shows you one number, not a market.
That is the work YieldStack does. YieldStack is a commercial mortgage brokerage. A borrower completes a 5-minute submit, the deal is presented to lenders whose programs fit it from a catalog of 20,000+ loan programs, and the median offer in under an hour, from an institutional lender, is the starting point for negotiation, not the end of it.
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. Every credit decision is made by the lender; YieldStack arranges the introductions and negotiates on the borrower's side, and no loan, rate, or closing is guaranteed.
SBA files are document-heavy by design. A package that states the occupancy plan, the use of proceeds, and which benchmark each lender is quoting against gives every CDC and 7(a) lender less to price as uncertainty. Submit your SBA deal as a guest and compare term sheets
What should you ask a lender before choosing 504 or 7(a)?
Choosing between SBA 504 and 7(a) is rarely about which program has the lower headline rate, because the two are priced on different benchmarks and carry different fee structures, so the useful comparison is lever by lever rather than number to number. Ask every lender the same questions so the answers can be compared directly.
- Which benchmark, and which date is this quote priced against? A 504 quote should name the Treasury reading it used; a 7(a) quote should name the prime or peg-rate date.
- Is this rate fixed or variable, and if variable, how often does it reset?
- What is the all-in fee, including anything financed into the loan balance rather than paid in cash?
- Does my property and my planned use meet the occupancy and use-of-proceeds rules for this program?
- What happens to the rate if the benchmark moves again before closing?
A lender that cannot answer the first question with a specific date is quoting from memory, not from this month's benchmark.
The bottom line
Neither SBA program page states a single current rate for 504 or 7(a). The 504 debenture is priced off an increment above the 10-year Treasury, which read 4.94 percent on October 30, 2026; SBA does not state this month's exact debenture percentage on its own program page, so this article describes the mechanism rather than guessing the number, and November's debentures price on November 5. The 7(a) program caps variable rates at prime plus a spread SBA publishes by loan size; for applications SBA receives in November 2026 that prime is the one in effect on November 2, and at the 7.00 percent prime FRED shows for October 27 the spreads give ceilings from 10.00 percent to 13.50 percent, a quarter point above the 9.75 to 13.25 percent that applied to September applications. Prime rose after the Federal Reserve's September 16, 2026 rate increase, and the Fed held its target range at 3-3/4 to 4 percent on October 28. Ask every lender which benchmark and which date their quote is built on, and compare 504 against 7(a) on occupancy fit and use of proceeds, not only on rate. This page is refreshed in place each month.