SBA Loan Rate Options for Lenders

WSJ Prime Rate

WSJ Prime Rate is the base rate on corporate loans posted by at least 70% of the 10 largest U. S. Banks, as listed in the Eastern print edition of the Wall Street Journal® (WSJ).

SBA LIBOR Base Rate

SBA LIBOR Base Rate is determined by using the one month LIBOR in effect on the first business day of each month as printed in a national financial newspaper plus 300 basis points.

SBA Optional Peg Rate

SBA Optional Peg Rate is a weighted average of rates the federal government pays for loans with maturities similar to the average SBA loan. It is calculated quarterly and published in the Federal Register.

SBA Fixed Base Rate

SBA Fixed Base Rate is determined by using the SBA LIBOR Base Rate (1 month LIBOR in effect on the first business day of the month PLUS 300 basis points), plus the average of the 5 year and 10 year LIBOR swap rates in effect on the first business day of the month as published in a national financial newpaper. (For loans other than SBA Express or Export Express) For loans less than 7 yr maturities max spread of + 2.25% allowed and for loans greater than 7 yr maturity max spread of 2.75% ($25,000 to $50,000 may increase by 1%, $25,000 or less may increase by 2% for both maturity ranges). (For SBA Express or Export Express loans the max rate will be Prime + 6.50% for loans of $50,000 or less and Prime + 4.50% for loans over $50,000)