Small business rates and funding news: week of November 2, 2026

Prime holds at 7.00% as of October 29, the Fed kept its target range unchanged at last week's meeting, and the SBA clarified several rules for business acquisition loans. 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 23 through October 29, 2026, according to the Federal Reserve's H.15 Selected Interest Rates release. The Federal Reserve's daily series on FRED (DPRIME) shows the same 7.00% reading through October 27, 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.

The Fed held steady. On October 28, 2026, the Federal Open Market Committee kept the federal funds target range at 3-3/4 to 4 percent. The vote was 10 to 2: Lisa D. Cook and Beth M. Hammack dissented because they preferred to raise the range by a quarter point. The statement said economic activity is expanding at a strong pace and that inflation remains elevated. The federal funds effective rate was 3.88% on each day from October 23 through October 29 in the same H.15 release. Because prime usually moves with the Fed's target range, the hold kept prime at 7.00%, but two votes for a hike are worth noting if you are weighing a variable-rate product.

Small business funding headlines

1. SBA eases a collateral rule for smaller acquisition loans. SBA clarified that lenders financing a business purchase with a 7(a) Small loan of $350,000 or less, or an SBA Express loan of up to $500,000, are not required to take available equity in other commercial real estate owned by the borrowers, 20%-plus owners or guarantors. The exception does not cover the property being financed, and lenders can still ask for more collateral. Source: National Association of SBA Loan Brokers, October 29, 2026.
2. More SBA acquisition clarifications. On its October 20 lender call, SBA explained a 24-month employment test for owner buyouts, more flexibility on Quality-of-Earnings reports, and how equity injections are calculated. SBA also said more than 250 lenders have processed over 1,000 loans through its new Intelligent Capital Access Platform pilot. Source: Coleman Report, October 27, 2026.
3. Texas firms report steady access, higher cost of credit. In the Dallas Fed's October business surveys, 15% of Texas firms said they have at least some difficulty getting short-term financing and 16% said the same for long-term financing, both unchanged from a year ago. More than a third, 35.3%, said their cost of credit rose over the past 12 months. Source: Federal Reserve Bank of Dallas, October 26, 2026.
4. Online small business lending keeps growing. Enova reported $1.8 billion in small business loan originations in the third quarter, up 28% from a year earlier, and said credit across its portfolio is stable to improving. Source: deBanked, October 26, 2026.
5. New SBA veterans business center planned for Idaho. The SBA announced its intent to fund a Veterans Business Outreach Center in Idaho, which will offer training and counseling to veterans, service members and military spouses who want to start or grow a business. Idaho was previously served by a center in Washington state. Source: U.S. Small Business Administration via Public, October 30, 2026.

The Federal Reserve's 2026 Small Business Credit Survey is also open now for owners of businesses with fewer than 500 employees who want to share their experience getting financing.

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 held rates on October 28, but two policymakers wanted a hike. If you are choosing between fixed and variable pricing, factor in that rates could rise.
• If you are buying a business with a smaller SBA loan, ask your lender whether the new commercial real estate collateral exception applies to your deal.
• 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, with no credit impact.

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.