SBA 7(a) Loans up to $500k Now Available

Business Insights

How SBA Loan Rates Compare to Other Options

NEWITY Newsletter image for an article about what to expect in 2024 from NEWITY.

SBA loans offer some of the lowest interest rates for small business financing. In the table below, we’ve compared the average cost of a $250,000 SBA 7(a) loan to other types of small business capital.

Interest Rate
Est. Monthly Payment
SBA 7(a) Loans*
10 years
Term Loan
15% – 45%
$4,856 – $9,821
7 years
Line of Credit
36% – 99%
$46,150 – $54,490
6 months

Depending on your business’ needs and cash flow, any of these capital options may be appealing.

A line of credit usually offers flexibility, allowing you to draw funds as needed and you’re only charged interest on the drawn amount. Certain lenders may provide term loans very quickly in exchange for higher rates. Both lines of credit and term loans may be good options for immediate cash needs. In some cases, they can be refinanced by an SBA 7(a) loan.

After comparing SBA loan rates with other options, we found that the estimated monthly payment for this option is the lowest. For most businesses, the SBA 7(a) loan benefits of lower monthly payments with no prepayment penalties are the best form of growth capital. 

Choose your partners wisely in 2024. We’d be happy to help you access capital in the new year for less.

NEWITY’s prescreen application will tell you if you’re eligible for an SBA 7(a) loan in less than 10 minutes. It does not impact your credit score or require any documents.


*SBA 7(a) loans provided through NEWITY’s Portal. Interest rate includes WSJ Prime Rate as of 2/15/24.

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To qualify for an SBA 7(a) small business loan, your business must be:

  1. U.S.-based and operated
  2. Owner supported / owner funded
  3. Eligible per the SBA’s requirements

Your loan amount will determined by the business’ average annual revenue, FICO score, and years in business