Market Overview
The Fed delivered its third consecutive rate cut on December 10th, lowering rates to 3.5%-3.75%, but the 9-3 split vote, the highest dissent since 2019 signals significant division among Fed officials about future policy. With only one more cut expected in 2026, the era of aggressive rate reductions appears to be ending. Small business optimism edged up to 99.0 in November, the highest in three months, driven by expectations for higher sales (+9 points to net 15%). However, the uncertainty index rose to 91, reflecting ongoing challenges as labor quality remains the top concern cited by 21% of business owners alongside persistent supply chain disruptions.
The Numbers
Current Rates (December 2025)
Federal Funds Rate: 3.5% – 3.75%
Prime Rate: 6.75%
Credit Cards: 16.5% – 29.9% (Q3 2025 last data point): ~21.4%
SBA 7(a) Loans: 9.75% – 13.25% (Based on Prime + Max Allowable Spreads)
SBA 504 Loans: ~6.00% – 7.70%
Fintech Term Loans: 10.00% – 25.00%
Conventional Bank Loans: 7.00% – 11.00%
Alternative Lenders: 12% - 30%+
Typical Credit Requirements
(By Product)
Credit Cards: 680+ (700+ for best limits $50K-150K)
Conventional Loans: 700+ required (720+ preferred)
SBA 7(a): 650+ minimum (680+ for better rates)
SBA 504: 660+ typical
Alternative Lenders: 600+ (higher rates below 650)
Processing Times
(Current Averages)
Credit Cards: 1 – 10 days (Approval to Card-in-Hand)
Alternative Lenders: 2-4 days
Fintech Term Loans: 1-7 days close
Conventional Bank Loans: 60+ day close
SBA 7(a) Standard: 60–90 days (*While SBA approval can happen in ~20 days, 3rd party closing requirements dictate the timeline).
SBA 7(a) Express (<$500k): 15–30 days
SBA 504: 60–90 days (Total project time)
Insights From The Experts
Patterns & insights that our experts are seeing within the industry
“Term loans are hot right now and approving quickly, as long as they can prove income. I'm getting better offers than we did in Q3. For stacking, i've been seeing smaller approvals for FICOs under 700, so any paydowns to bump up the score will go a long way.”
“Many small businesses are getting denied for BLOC's right now, especially e-commerce and retail, so it’s a great opportunity for us in those industries.”
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Sources:
Biz2Credit Lending Index
FOMC Statements (Sept 18th & Oct 29th)
Fed Reserve Interest Rates
Bankrate, NerdWallet
SBA Processing
SBA Industry Lending