Small business rates and funding news: week of October 5, 2026

Prime holds at 7.00% as of October 1, the Fed meets again October 27–28, and new SBA rules and fees took effect October 1. Here is what owners should know.

Where rates stand

Prime rate. The U.S. bank prime loan rate was 7.00% on October 1, 2026, the latest daily reading in the Federal Reserve's H.15 data on FRED. The Wall Street Journal's money rates table also lists the U.S. prime rate at 7.00%, effective September 17, 2026. Many variable-rate business loans and lines of credit are priced off prime, so it is the number to watch when you compare quotes.

Last Fed decision. At its September 15–16 meeting, 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, according to the Federal Reserve statement of September 16, 2026. In the FRED daily series, prime moved from 6.75% on September 16 to 7.00% on September 17 and has not changed since.

What Fed officials projected. In the September projections, the median estimate for the federal funds rate at the end of 2026 was 4.1%, up from 3.8% in the June projections, per the Federal Reserve's September 16, 2026 projection tables. Projections are not decisions, and they can change from meeting to meeting.

Next Fed meeting. The next scheduled meeting is October 27–28, 2026, according to the Federal Reserve meeting calendar. No decision has been made for that meeting yet.

Small business funding headlines

1. New SBA lending rules are now in effect. 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. Lending executives quoted by Small Business Currents say the debt service coverage requirement for initial business acquisitions rises from 1.15 times to 1.25 times, and that 7(a) acquisition loans under $350,000 no longer receive lighter underwriting. Source: Small Business Currents, September 30, 2026. The SBA also released a technical update to the new rules on September 25. Source: Coleman Report, September 28, 2026.
2. New SBA 7(a) fees start with fiscal year 2027. Under SBA Information Notice 5000-881797, effective October 1, 2026, the upfront guaranty fee is 0% on 7(a) loans of $700,000 or less made to manufacturers, certain food supply chain businesses and businesses located in rural areas. Source: NAGGL, September 4, 2026.
3. SBA sets its base rate for the fourth quarter. The SBA's optional peg rate, which may be used as a base rate for guaranteed fluctuating-rate SBA loans, will be 5.00% for the October to December quarter. Source: Federal Register, October 1, 2026.
4. SBA lending to specialty trade contractors is down. Approvals of SBA 7(a) loans for specialty trade contractors fell 22% year over year in the first half of 2026, from around 3,200 to roughly 2,500, according to agency data reviewed by Homepros. Source: Homepros, September 28, 2026.

What this means for business owners

• Prime has held at 7.00% since September 17, so variable-rate quotes tied to prime should look much like they did last week.
• The Fed meets again October 27–28. If you are weighing a variable-rate product, keep that date in mind when you compare offers.
• If you plan to buy a business with an SBA loan, ask your lender which rules apply to your application and gather your historical financial statements early.
• Compare total cost and repayment terms, not just the headline rate.

How Pro Capital can help

Pro Capital places business owners with the right lender for their capital needs. Term loans and lines of credit start at Prime + 1 and require a 680+ FICO score, and all of our funding products are unsecured. You can see today's prime rate on our rates page. To talk through your options, call (561) 444-7177 or apply online.

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.