SBA Optional Peg Rate Announcement for Q2 FY 2026
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
The U.S. Small Business Administration has published its Optional Peg Rate for the April-June quarter of fiscal year 2026. This rate is set at 4.50 percent and serves as a weighted average cost of money to the government for maturities similar to the average SBA direct loan. It may be used as a base rate for guaranteed fluctuating interest rate SBA loans. Additionally, the notice restates that the maximum legal interest rate for any Third Party Lender's commercial loan funding a 504 project is 6% over the New York Prime rate, or the maximum rate permitted by the constitution or laws of the relevant state if lower.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Optional Peg Rate set at 4.50% for April 1 - June 30, 2026 quarter
- Rate based on weighted average cost of money to government for SBA direct loan maturities
- Optional Peg Rate may be used as base for guaranteed fluctuating interest rate SBA loans
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Obligations
What this law requires
Publish the Optional Peg Rate on a quarterly basis as required by 13 CFR 120.214
Set and announce the Optional Peg Rate at 4.50 percent for the April-June quarter of FY 2026
Use the Optional Peg Rate as the base rate for guaranteed fluctuating interest rate SBA loans
Ensure the maximum legal interest rate for commercial loans funding any portion of a 504 project does not exceed 6% over the New York Prime rate
Apply the maximum interest rate permitted by the state constitution or state laws if that maximum is lower than 6% over New York Prime rate for 504 project loans