Construction loan rates in 2026
Quick answer
Construction financing rates vary by product. For strong borrowers, SBA loans and equipment financing start around 8–10%, commercial construction loans price off a benchmark plus a spread, working capital runs higher, and fix-and-flip loans land near 9–12% plus 1–3 points.
The biggest levers on your rate are whether the loan is secured, your credit and revenue, and your time in business.
There's no single "construction loan rate," and any site that quotes one number is guessing.
What you pay depends on the product and your profile. A secured equipment loan and an unsecured cash-flow advance are priced in completely different worlds, even for the same contractor.
Here's where rates sit by product and what actually moves your number.
Key takeaways
- → Rates are set by product first — secured loans price far below unsecured ones.
- → SBA loans carry the lowest rates and longest terms; fix-and-flip carries the highest plus points.
- → Your credit, revenue, time in business, and down payment fine-tune the rate within each product.
- → Comparing two or three lenders is the simplest way to shave your rate.
Typical construction financing rates by product
These are general ranges for qualified borrowers. Your offer can land above or below depending on your numbers.
| Product | Typical starting rate | Typical term |
|---|---|---|
| SBA 7(a) / 504 | ~9–11% | 10–25 years |
| Equipment financing | ~8.99%+ | 2–7 years |
| Commercial construction | Benchmark + spread (variable) | 12–24 months |
| Business line of credit | Low double digits | Revolving |
| Invoice factoring | 1–3% factor fee per invoice | Per invoice |
| Fix & flip / hard money | ~9–12% + 1–3 points | 12–24 months |
What affects your rate
Security comes first. A loan backed by equipment or real estate prices well below an unsecured one, because the lender's risk is lower.
Then your profile. Personal and business credit, time in business, and revenue all move the number within a product's range.
The product itself sets the ballpark. No amount of strong credit makes a short-term hard money loan as cheap as an SBA loan — they're built for different jobs.
How to get a lower rate
Secure the loan when you can. Put more money down. Show steady revenue through clean bank statements. And fix what you can on your credit before applying.
Then compare. Run your scenario through the calculator below, then get real quotes from a few lenders — even a fraction of a point compounds over a multi-year term.
Construction Loan Calculator
Monthly Payment
$4,086
Total Interest
$93,224
Total Paid
$343,224
Estimates only. Actual loan payments depend on your lender's exact rate, fees, and underwriting. Pre-qualify with multiple lenders to see real offers.
Rates by financing type
Each product has its own rate dynamics. Dig into the one you need.
Compare rates by product
Equipment financing rates
Secured by the machine — among the lower rates.
Construction business loans
Term loans and working capital.
Working capital & factoring
Lines of credit and invoice factoring.
Commercial construction loans
Draw-based, often variable rates.
Fix & flip / hard money
Higher rates plus points, short term.
SBA construction loans
The lowest rates and longest terms.
Compare lender rates
Construction lenders compared by rate and terms
Best Overall — Same-Day Funding Across Six Loan Types Ad
Best Line of Credit for Cash Flow
Best Invoice Factoring for Contractors
To see your real rate across several lenders with no hard credit check, eBoost Partners quotes multiple options through its construction business financing.