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 |