Cost of Capital · Updated Q1 2026
Small Business Cost of Capital Index — Q1 2026
The quarterly benchmark for comparing capital sources on a single all-in APR basis — from SBA 7(a) at the low end through stacked MCA at the high end.
The data
Current all-in APR ranges across every major commercial capital source, refreshed quarterly.
| Source | All-in APR range | Speed |
|---|---|---|
| SBA 7(a) | 8.0% – 11.5% | 3 – 6 weeks |
| SBA 504 (first mortgage + CDC) | 6.5% – 9.0% | 6 – 10 weeks |
| Bank conventional term | 7.5% – 10.5% | 3 – 6 weeks |
| Inflection Financing term loan | 9.9% – 16.0% | 3 – 10 days |
| Equipment financing | 7.5% – 13.5% | 3 – 7 days |
| Bridge loan | 9.5% – 14.5% | 1 – 2 days |
| Working capital line | 10% – 18% | Same day – 3 days |
| Online term (OnDeck-tier) | 24% – 40% | 1 – 3 days |
| MCA (Tier 1) | 38% – 65% | Same day |
| MCA (stacked) | 120% – 180% | Same day |
Methodology
All-in APR includes rate + origination + guarantee fees + typical monthly service charges, normalized to a 5-year hold.
Key takeaways
- →The APR gap between SBA and MCA is now 60 – 170 points — the widest in modern lending history.
- →For any deal that can wait 3 weeks, SBA 7(a) is nearly always the correct answer on cost.
- →Bridge financing is the right tool when speed matters — its APR is materially lower than MCA at similar velocity.
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<blockquote cite="https://inflectionfinancing.com/data/cost-of-capital-index-2026"><p><strong>The APR gap between SBA and MCA is now 60 – 170 points — the widest in modern lending history.</strong></p><footer>Source: <a href="https://inflectionfinancing.com/data/cost-of-capital-index-2026">Inflection Financing — Small Business Cost of Capital Index — Q1 2026</a></footer></blockquote>
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Citation: Inflection Financing Commercial Lending Data, "Small Business Cost of Capital Index — Q1 2026" (Q1 2026). Available at inflectionfinancing.com/data/cost-of-capital-index-2026.
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