So what is rate on a SBA 7(a) loan?
The maximum rate a lender can charge on a SBA 7(a) loan is 2.75% over one of these three indices-
SBA LIBOR Base Rate
SBA Fixed Base Rate
The prime and LIBOR base rates are variable rates while the fixed base rate is fixed for the term of the loan.
Currently the indices are-
PRIME RATE= 3.25%
SBA LIBOR Base Rate July 2010 = 3.35%
SBA Fixed Base Rate July 2010 = 5.88%
If prime is the index, which is what most lender's use, your rate would be 6% (3.25% + 2.75%)
Here's the answer from the SBA: http://www.sba.gov/mostrequesteditems/CON_FAQ10.html