Market Overview
The lending environment is in a strategic holding pattern, but the optimistic signals underneath are important to pay attention to. The Fed held rates steady at 3.5% - 3.75% in their last January Meeting, pausing after three consecutive cuts, with Prime rate sitting at 6.75%. Markets don’t expect another cut until mid-year at the earliest based on current market data. The NFIB optimism Index fell slightly to 99.3 but that remains above its 52 year average and with small business owners expecting high sales this quarter, optimism is trending upward. Certain headaches that remain a top concern for businesses are taxes, topping the list with 18% of owners calling it their biggest problem, labor quality following at 16%, and insurance costs surging to 13%, the highest reading since 2018. A major bright spot for lending professionals is that borrowing costs reported by owners hit their lowest since Jan 2021, and capital spendings reached their highest level since 2023. Even with feeling slightly squeezed by cost they can’t control, business owners are investing again.
Brokers who show up with clear financing solutions, particularly around working capital and funding for growth, have a real opportunity to become the trusted advisor their clients need right now.
Current Rates (Feb 2026)
Prime Rate: 6.75%
Federal Funds Rate: 3.5% – 3.75%
Personal Credit Cards: Average: 19.61% - 23.79%
Alternative Lenders: 7.00% – 40.00%+ (Varied on Credit & Stage of Business)
SBA Loans: 5.85% to 14.75% APR (Rates calculated w/ current prime rate as of Jan 2026.)
Business Credit Cards: 16.74%–28.49% APR
Bank Small Business Loans: 6.99% to 11.50% (Variable)
Equipment loans: 4.00% to 24.00% APR
Revenue-Based Financing: 1.08 to 1.25 factor rate
Insights From The Experts
Patterns & insights that our experts are seeing within the industry from their day-to-day
“Personal Term Loans are the perfect tool to restructure credit card debt, boost your score, and set your business up for better funding options”
“Still seeing continued success for my clients with Lightstream for term loans.”
“Chase Ink is a strong card for businesses at the moment”
“Consult with your client, don’t sell them.”
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 interest rates below 650)
Average Processing Times
(Current Averages*)
Credit Cards: 1 – 10 days (Approval to Card-in-Hand)
Alternative Lenders: 1-4 days
Conventional Bank Loans: 7-21 days (average)
SBA loans: 60–90 typically (30-45 days minimum with fastest lenders)
*Processing times will vary depending on the unique situation. These are not guarantees and will not be the same for every client
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Sources:
Federal Reserve FOMC Statement, January 28, 2026 (federalreserve.gov)
NFIB Small Business Economic Trends, January 2026 (nfib.com, released Feb. 10, 2026)
NFIB Small Business Economic Trends, December 2025 (nfib.com, released Jan. 13, 2026)
CNBC, "Fed holds key interest rate steady," January 28, 2026
Bank of America Prime Rate Information (bankofamerica.com)
TD Economics, U.S. NFIB Small Business Optimism Index Analysis, January 2026
Trading Economics (tradingeconomics.com)
Yahoo Finance, Federal Reserve Live Coverage, January 30, 2026
Nav.com, (Today’s average business loan interest rates), Jan 27, 2026