Credit & Rates
U.S. Credit & Interest Rates
The full rate ladder — from the Fed to your business credit card. Updated monthly from the Federal Reserve and U.S. Treasury. June 2026.
Federal Funds Rate
5.25%
→ Held at 11th consecutive meeting
Prime Rate
8.50%
▲ Fed rate + 3.00% spread
Best Business HYSA
4.92%
▲ Mercury — best in class
30Y Mortgage Rate
6.94%
→ 10Y Treasury + ~2.6% spread
The Rate Ladder — From Fed to Your Business
Federal Funds Rate
Set by the FOMC. The overnight rate banks charge each other. Floor for all borrowing.
5.25%
Held June 12
↓ Banks add 3.00% spread
Prime Rate
Fed rate + 3%. Benchmark for most business loans and lines of credit.
8.50%
Moves with Fed rate
↓ SBA adds 2.75%
SBA 7(a) Variable Loan
Prime + 2.75% for most loans. For owner-operated businesses up to $5M.
~11.25%
Variable, resets quarterly
SBA 504 Fixed Rate
Fixed-rate financing for real estate and equipment. Lower than 7(a) variable.
~6.8%
Fixed for 10–25 years
Business Line of Credit
Prime + 1–3%. Revolving, variable-rate. Most common short-term business credit.
9.5–11.5%
Variable, bank-dependent
30-Year Mortgage
10-year Treasury yield + ~2.6% spread. For residential and small commercial properties.
6.94%
30Y fixed, national avg
Business Credit Card
Highest cost credit available. Never carry a balance month-to-month at these rates.
22–28%
⚠️ Most expensive debt
↓ The other side — what your cash can earn
Business High-Yield Savings (HYSA)
Best rates from Mercury, Bluevine, Relay. Move idle cash here immediately.
4.75–4.92%
FDIC insured, no lock-up
Treasury Bills (3-month)
Risk-free U.S. government debt. Available through TreasuryDirect.gov. No fees.
5.24%
Highest risk-free yield
Federal Funds Rate — 2 Year History
Jun'24AugOctDecFeb'25AprJunAugOctDecFeb'26Jun ▸
The Fed raised rates rapidly from 0.25% (early 2022) to 5.50% (July 2023), then held. First cut anticipated September 2026. At the current pace, rates may reach 4.75% by year-end 2026.
Bank Lending Standards — Are Banks Tightening? (Fed SLOOS Survey)
The Fed's Senior Loan Officer Opinion Survey measures whether banks are tightening or loosening credit standards. Positive = tightening (harder to borrow). Negative = loosening (easier to borrow).
C&I loans — large firms
Tightening
C&I loans — small firms
Tightening
Commercial real estate
Tight
Consumer loans
Mild tight
Banks are tightening across all loan categories. This means higher credit standards, lower loan-to-value ratios, and increased documentation requirements — even for businesses with good credit. Apply for credit before you need it.
Best Rate Options — Ranked for Small Businesses
| Product | Rate | Best for | Status |
|---|---|---|---|
| 3-Month T-Bills TreasuryDirect.gov |
5.24% | Cash you won't touch for 90 days | Best yield |
| Mercury HYSA Mercury.com |
4.92% | Operating reserve, instant access | Recommended |
| Bluevine Business Bluevine.com |
4.80% | Up to $250K at top rate | Great option |
| SBA 504 Loan Fixed rate |
~6.8% | Real estate & equipment, long-term | Best fixed borrow |
| SBA 7(a) Variable Variable rate |
~11.25% | Working capital, if needed | Use sparingly |
| Business Credit Card Revolving |
22–28% | Pay in full monthly only | Never carry balance |
What this means for your business
Fix your rates while you can
Variable debt at 11%+ is expensive and unpredictable. The SBA 504 at ~6.8% fixed is the smartest long-term borrow in this environment for real estate or equipment.
Your cash is finally earning
At 4.92%, a $100K cash reserve earns ~$4,920/year risk-free. Move idle business cash to a HYSA or T-Bills today. Don't leave it in a 0.01% checking account.
Banks are tightening — apply early
If you think you might need a credit line in the next 12 months, apply now. Banks are increasing requirements. It's always easier to get credit when you don't need it.
First cut likely September 2026
Markets price 65% probability of a 25bps cut at the Sept 16–17 FOMC meeting. Don't delay major borrowing decisions waiting for cuts — save them as a refinancing opportunity.