Sure small loans have higher rates but they are lower margin and less profitable. They require way more overhead relative to loan size and a drastically higher chance of default (I used to underwrite small biz loans, many times you can’t even get recent and accurate financials - eg for a small plumbing biz). Just look at the market - there’s a reason all the big banks compete to bank Apple but the SBA has to step in to try and stimulate small biz lending.