Small business rates and funding news: week of October 26, 2026

Prime holds at 7.00% as of October 22, the Fed's next policy meeting is this week on October 27–28, and the SBA spent the week on contracting programs, disaster lending and new acquisition rules. Here is this week's update.

Where rates stand

Prime rate. The U.S. bank prime loan rate was 7.00% on each business day from October 16 through October 22, 2026, according to the Federal Reserve's H.15 Selected Interest Rates release dated October 23, 2026. The Federal Reserve's daily series on FRED (DPRIME) shows the same 7.00% reading through October 21, its latest observation, and prime has held at 7.00% since September 17, 2026. Many variable-rate business loans and lines of credit are priced off prime, so it remains the number to watch when you compare quotes.

Fed meeting this week. The Federal Open Market Committee meets Tuesday and Wednesday, October 27–28, 2026, according to the Federal Reserve meeting calendar. The federal funds effective rate was 3.88% on each day from October 16 through October 22 in the same H.15 release. Banks usually move prime when the Fed changes its target range, so any decision on Wednesday could show up in prime-based pricing soon after. No decision has been announced yet.

Small business funding headlines

1. SBA refers 689 former 8(a) firms to GSA for contract audits. On October 21, 2026, the SBA referred 689 firms removed from its 8(a) Business Development Program to the General Services Administration for a review of their past federal contract awards. GSA may refer suspected wrongdoing to the Department of Justice. Source: U.S. Small Business Administration, October 21, 2026, with more detail from GSA, October 21, 2026.
2. HUBZone access expands in 18 states. The SBA said it has approved 18 governors' petitions since January 2025, creating 252 Governor-Designated Covered Areas where eligible small businesses, many of them rural, can seek HUBZone certification and compete for federal contracts. Thirty states now take part in the initiative. Source: U.S. Small Business Administration, October 22, 2026.
3. $9.5 million for small manufacturer training. The SBA awarded $9.5 million to two tribal organizations, including Navajo Technical University, to provide in-person manufacturing training and reskilling for employees of 8(a) and HUBZone-eligible small businesses through its Empower to Grow program. Source: U.S. Small Business Administration, October 19, 2026.
4. New SBA disaster loans for wildfire and flood areas. The SBA made disaster loans available to businesses and nonprofits affected by the Eastern Washington wildfires, covering five Washington and three Idaho counties. Businesses can borrow up to $2 million for physical damage, with rates as low as 4% for businesses and terms up to 30 years. Source: U.S. Small Business Administration, October 23, 2026. The SBA also opened a Business Recovery Center in Tusayan, Arizona, for businesses affected by flash flooding at Grand Canyon National Park, open through October 30. Source: U.S. Small Business Administration, October 20, 2026.
5. What the new SBA SOP means for business buyers. In a guest perspective, a First Internet Bank lender explains that under SOP 50 10 8.1, effective October 1, a first-time acquisition needs a debt service coverage ratio of at least 1.25x, up from 1.15x, based on historical earnings only, and every SBA-financed change of ownership needs an independent valuation. The rules apply to any loan that receives an SBA loan number on or after October 1. Source: Polsky Center for Entrepreneurship and Innovation, October 21, 2026.
6. Larger SBA acquisition loans are still moving. A review of $2 million-plus SBA acquisition loans without real estate over the past 12 months counted 808 loans totaling $2.7 billion, up 14% and 12% from the prior year, with the top 10 banks making 49% of them. Source: This Week in ETA, October 23, 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 October 27–28. If you are weighing a variable-rate product, keep that decision in mind when you compare offers.
• If you are buying a business with SBA financing, check whether your loan will be numbered under the new SOP and plan for the higher cash-flow bar and the valuation requirement.
• Compare total cost and repayment terms, not just the headline rate.

How Pro Capital can help

Pro Capital — Funding Made Simple — 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; lines of credit also need $8,000+ monthly revenue; 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 at www.getprocapital.com/apply.

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.