{"ok":true,"canonical_url":"https://dealroom.so/glossary/alternative-base-rates","api_url":"https://dealroom.so/api/public/glossary/alternative-base-rates","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"alternative-base-rates","term":"Alternative Base Rates","group":"The loan itself","definition":"These are benchmark interest rates, like Term SOFR or LIBOR (phasing out), that lenders use to calculate the variable interest rate on your SBA loan. Your actual rate is this base rate plus a \"spread.\"","what_it_means":"Most SBA 7(a) loans are variable rate, tied to an alternative base rate. Understand which index your loan uses and how frequently it adjusts. A rising base rate will increase your monthly payments, so model for potential rate hikes.","url":"https://dealroom.so/glossary/alternative-base-rates","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"variable-rate","term":"Variable rate","url":"https://dealroom.so/glossary/variable-rate"},{"slug":"base-rate-index","term":"Base Rate Index","url":"https://dealroom.so/glossary/base-rate-index"},{"slug":"term-sofr","term":"Term SOFR","url":"https://dealroom.so/glossary/term-sofr"},{"slug":"sofr","term":"SOFR","url":"https://dealroom.so/glossary/sofr"}],"related_questions":[{"question":"What specific alternative base rates are permissible for variable rate 7(a) loans?","url":"https://dealroom.so/for-lenders/questions/what-specific-alternative-base-rates-are-permissible-for-variable-rate-7-a-loans"},{"question":"What alternative base rates are available for variable-rate 7(a) loans besides the Wall Street Journal Prime rate?","url":"https://dealroom.so/for-lenders/questions/what-alternative-base-rates-are-available-for-variable-rate-7-a-loans-besides-the-wall-str"},{"question":"What alternative base rate options are available for variable rate 7(a) loans?","url":"https://dealroom.so/for-lenders/questions/what-alternative-base-rate-options-are-available-for-variable-rate-7-a-loans"},{"question":"What are the current alternative base rate options for variable rate 7(a) loans?","url":"https://dealroom.so/for-lenders/questions/what-are-the-current-alternative-base-rate-options-for-variable-rate-7-a-loans"},{"question":"What are the current alternative base rate options available for variable rate 7(a) loans?","url":"https://dealroom.so/for-lenders/questions/what-are-the-current-alternative-base-rate-options-available-for-variable-rate-7-a-loans"},{"question":"What are the current alternative base rate options for variable rate 7(a) loans, besides Prime Rate?","url":"https://dealroom.so/for-lenders/questions/what-are-the-current-alternative-base-rate-options-for-variable-rate-7-a-loans-besides-pri"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Alternative Base Rates","url":"https://dealroom.so/glossary/alternative-base-rates","source_type":"DealRoom Data"}}