Business Loan Rates (November 2026): Current Rates by Loan Type

Business loan rates in November 2026 range from about 6% APR for a bank term loan to 22% APR for equipment financing or a line of credit on fair credit. SBA 7(a) loans typically price at 10–13% APR for qualified borrowers, under official caps of 10.00–13.50% with prime at 7.00%.

Financing type	Typical rate or cost	Typical term	Who gets the low end
Bank term loan	6–12% APR	1–5 years	680+ FICO, 2+ years of profitable tax returns, collateral
SBA 7(a) loan	10–13% APR (caps 10.00–13.50%)	10–25 years	680+ FICO, 2+ years, cash flow that covers the payment
SBA 504 loan, CDC portion	6.58–6.59% fixed (November 5, 2026 sale)	10, 20 or 25 years	Owner-occupied real estate or long-life equipment
Equipment financing	6–22% APR	2–7 years	700+ FICO, 2+ years, new equipment
Business line of credit	8–22% APR	12–24 month renewable draw period	700+ FICO, 3+ years, a bank relationship
Invoice factoring	1–4% per 30 days	Until your customer pays	Creditworthy B2B customers, clean invoices
Purchase order financing	1.5–6% per transaction	Until the order is paid	Strong buyer, solid margin, reliable supplier
Revenue-based working capital	Fixed total agreed upfront, not an APR	3–18 months	Steady deposits, few existing advances

These are the working ranges across Bay Street Lending's 1,800+ funding partners as of November 2026, from $25,000 to $10 million. Each lender prices its own file, so the rate you are offered depends on the factors below.

A rate only means something next to a term. Here is the monthly payment and total interest on $100,000 at the low and high end of each APR-priced product, at a typical term for that product.

Financing type	Term	Monthly payment	Total interest
Bank term loan	3 years	$3,042 at 6% to $3,321 at 12%	$9,519 to $19,572
SBA 7(a) loan	10 years	$1,322 at 10% to $1,493 at 13%	$58,581 to $79,173
Equipment financing	4 years	$2,349 at 6% to $3,151 at 22%	$12,728 to $51,229
Business line of credit, full draw	12 months	$8,699 at 8% to $9,359 at 22%	$4,386 to $12,313

• The longest term has the smallest payment, not the lowest total cost. The SBA loan's 10-year schedule keeps the monthly payment lowest, but it carries interest for far longer than a 3-year bank loan.
• Fees sit on top of the rate. SBA loans add a guaranty fee, many lenders charge a 1–3% origination fee, and lines of credit can carry a draw fee each time you pull funds. Compare the APR, which includes fees, not the interest rate alone.
• A line of credit costs only what you draw. The table assumes the full $100,000 is drawn and repaid over 12 months; draw half and the interest roughly halves.

Equipment payments here assume no money down. See the equipment financing guide for payments by credit tier and down payment.

The market sets the floor. Your file sets where you land above it.

1. The prime rate and the Fed

Most variable-rate business loans, including SBA 7(a) loans and many bank lines, are priced as prime plus a spread. Prime is 7.00% and has been since September 17, 2026. The Federal Reserve kept its target range at 3.75–4.00% on October 28, 2026, so variable rates did not move this month. A quarter-point cut would lower prime, and every variable-rate loan priced on it, by the same quarter point.

2. Credit score

Credit moves the rate more than anything else you control. On equipment financing, 700+ FICO prices at 6–14% APR while 580–619 prices at 18–22%. Lines of credit split the same way: bank lines at 8–14% for 700+ FICO, online lines at 14–22% for 650+. If your score is below 650, the bad credit business funding guide covers what is realistic.

3. Time in business and cash flow

Banks and SBA lenders want two or more years of tax returns showing profit that covers the new payment with room to spare. Businesses with less history, or with strong deposits but thin reported profit, usually price with online lenders or with revenue-based funders instead.

4. Collateral and what you are financing

Secured debt prices lower. Equipment secures its own loan, which is why financing a machine or vehicle often beats an unsecured loan for the same business. Real estate behind an SBA 504 loan gets a fixed rate set at the monthly debenture sale; the current SBA loan rates guide tracks each sale and the 7(a) caps by loan size.

5. Term and repayment schedule

Shorter terms usually carry lower rates and higher payments. Weekly or daily repayment, common on short-term financing, lowers the lender's risk and can make approval possible where a monthly schedule would not.

Three common products price in ways that do not convert cleanly to an APR. Compare them by total dollar cost for the time you will actually use the money.

• Invoice factoring charges 1–4% of the invoice for each 30 days it stays unpaid, after advancing 80–95% upfront. A customer who pays in 30 days costs one fee; one who pays in 75 days costs three. Approval rests on your customers' credit, not yours. The invoice factoring guide works through the math.
• Purchase order financing charges 1.5–6% of the funded amount per transaction and is repaid when your customer pays the order.
• Revenue-based working capital is the purchase of a fixed amount of your future receivables, not a loan. The total you repay is agreed before funding and does not grow if repayment runs long. It is priced on your bank statements, not your credit score, and it funds as fast as 6 hours, so it fits a gap that cannot wait for a bank. Same-day working capital from $25,000 to $2 million starts with 4 months of statements, and the same day business loans guide explains the bank cutoff times.

Advertised ranges are a starting point. The real comparison is between written offers on your own file.

1. Get offers on the same day. Rates and approvals depend on your bank balance and credit on the day of underwriting, so offers pulled weeks apart are not comparable.
2. Put every offer in dollars. For each one, write down the amount you receive after fees, the total you repay and the date of the last payment.
3. Check the prepayment terms. Some loans let you save interest by paying early; others charge a penalty or keep the full cost regardless.
4. Match the product to the use. Long-lived assets belong on long terms, recurring gaps on a line of credit, and short urgent gaps on short-term funding that you can repay from the cash it unlocks.

A broker does the first two steps for you. One application through Bay Street goes to the funding partners whose programs fit, with a soft credit pull, and an advisor lays the offers side by side. If a revolving facility fits better than a lump sum, a revolving business credit line can be quoted alongside the other options, and long-term real estate or expansion needs can be routed to SBA 7(a) and 504 lenders.