Small business rates and funding news: week of September 28, 2026

Prime rose to 7.00% after the Fed's September rate hike, and new SBA rules start October 1. Here is this week's sourced small business funding news.

Where rates stand

Federal Reserve decision. On September 16, 2026, the Federal Open Market Committee voted 12-0 to raise the target range for the federal funds rate by 1/4 percentage point, to 3-3/4 to 4 percent. The statement said inflation remains elevated. Read the full Federal Reserve statement.

Next Fed meeting. The next FOMC meeting is scheduled for October 27-28, 2026, according to the Federal Reserve meeting calendar.

Prime rate. The U.S. Bank Prime Loan rate was 7.00% as of September 28, 2026, the latest daily reading in the Federal Reserve's H.15 data on FRED. The daily series shows prime at 6.75% on September 16 and 7.00% from September 17. Many variable-rate business loans and lines of credit are priced off prime, so a prime change can affect what lenders quote. Pro Capital term loans and lines of credit start at Prime + 1. You can see the current figure on our rates page.

Small business funding headlines

1. Small business optimism cooled in August. The NFIB Small Business Optimism Index fell 1.1 points to 98.7, but stayed above its 52-year average of 98.0, and the Uncertainty Index fell 2 points to 89. Source: ABA Banking Journal, September 8, 2026.
2. New SBA underwriting rules take effect October 1. SBA SOP 50 10 8.1 applies to 7(a) and 504 applications that receive an SBA loan number on or after October 1, 2026, per the SBA information notice. Law firm Matthews reports that 7(a) business acquisitions and owner buyouts must show at least a 1.25x debt service coverage ratio, and that 504 loans move to a 1.15x historical standard. Source: Matthews, September 25, 2026.
3. SBA size standards comment period extended. The SBA extended the comment period on its proposal to consolidate about 1,000 industry size classifications into 338 broader standards. The new deadline is November 20, and the agency has received more than 3,000 comment letters. Source: American Banker, September 24, 2026.
4. SBA 7(a) volume is down from last year's record. An analysis by Lumos Data of SBA data found that through the first nine months of fiscal year 2026, 7(a) lending totaled 40,824 loans and $21.8 billion, compared with 61,270 loans and $27.6 billion a year earlier. The analysis notes that fiscal 2025 was an unusually strong comparison year. Source: Lumos Data, July 15, 2026.

What this means for business owners

• Prime moved up this month, so variable-rate quotes may be higher than they were in August.
• If you are considering an SBA loan, ask your lender which SBA rules apply to your application date.
• Compare options before you commit, and look at total cost, not just the headline rate.

If you want to compare options, start an application. Pro Capital uses a soft credit pull only, and term loans and lines of credit start at 680+ FICO.

This article is informational and not a commitment to lend. Figures come from the linked sources and may change. Rates and terms depend on the lender and your business profile.