Market Overview
The lending landscape is being shaped by cautious optimism. The Fed’s recent move down to a 3.5%–3.75% target range signals a gentler easing cycle with only limited cuts expected ahead, keeping aggressive rate drops off the table and anchoring Prime around 6.75% for now. In the small business market, sentiment is improving, with NFIB optimism climbing to around 99.5. Uncertainty is also easing, suggesting a clearer path forward for many owners. However, businesses are still loudly flagging taxes (at 20%) and labor quality (at 19%) as top headaches. Lingering supply chain friction also remains a factor. This current dynamic creates a prime window for brokers to guide clients toward the right financing fit for their business to succeed. In short, this combination of easing rates, improving confidence, and persistent pain points means brokers who show up with clear options and fast answers can win more deals, deepen relationships, and become the go‑to financing partner in their market
Current Rates (Jan 2026)
Prime Rate: 6.75%
Federal Funds Rate: 3.5% – 3.75%
Personal Credit Cards: Average ~19.7%
Fintech Term Loans: 7.00% – 40.00%+ (Varied on Credit & Stage of Business)
SBA Loans:
Variable: 9.75% to 13.25% (Calculated with the current prime rate as of Jan 2026.)
Fixed: 11.75% to 14.75%
Business Line Of Credit: 10.00% to 28.00% APR
Bank Small Business Loans: 6.3% to 11.5% (Variable)
Equipment loans: 4.00% to 24.00% APR
Insights From The Experts
Patterns & insights that our experts are seeing within the industry from their day-to-day
“Offer a solution, not a program.”
“I've had a lot of clients start the call stating what they THINK or SHOULD be approved for. After a few-minute conversation with clients, it becomes abundantly clear they don't understand how underwriting or finance works from a lender's point of view. Helping educate smaller businesses or startups on how banks only finance based on performance and history has helped bring the clients down to earth to open their eye to creative funding or personal options as they get their feet under them in the first few years.”
“Within the Personal Term Loan space, I’m seeing a lot of success with Lightstream”
“Understanding lending trends is very important. Make sure to have a crm with proper KPI's.”
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)
Average 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 loans: 15–90 days depending on tim(*While SBA approval can happen in ~20 days, 3rd party closing requirements dictate timeline).
*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:
Bankrate, Credit card APR, https://www.bankrate.com/data-center/credit-card/, January 14, 2026
Biz2Credit Lending Index
Bankrate
NerdWallet