{"ok":true,"canonical_url":"https://dealroom.so/glossary/alternative-reference-rates-committee","api_url":"https://dealroom.so/api/public/glossary/alternative-reference-rates-committee","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-reference-rates-committee","term":"Alternative Reference Rates Committee","aka":"ARRC","group":"People and paperwork","definition":"The ARRC is a group of private-market participants convened by the Federal Reserve to help transition from LIBOR to new reference rates like SOFR. This affects how variable interest rates are set for your loan.","what_it_means":"For SBA 7(a) loans with variable interest rates, the ARRC's work means that your interest rate will likely be tied to SOFR (Secured Overnight Financing Rate) plus a spread, rather than the old LIBOR. Understand how your specific loan's variable rate is calculated before closing.","url":"https://dealroom.so/glossary/alternative-reference-rates-committee","official_sources":[],"related":[{"slug":"variable-rate","term":"Variable rate","url":"https://dealroom.so/glossary/variable-rate"},{"slug":"sofr","term":"SOFR","url":"https://dealroom.so/glossary/sofr"},{"slug":"libor","term":"LIBOR","url":"https://dealroom.so/glossary/libor"},{"slug":"spread","term":"Spread","url":"https://dealroom.so/glossary/spread"}],"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 is the role of the lender's credit committee in the SBA 7(a) loan approval process?","url":"https://dealroom.so/for-lenders/questions/what-is-the-role-of-the-lender-s-credit-committee-in-the-sba-7-a-loan-approval-process"},{"question":"Are SBA 7(a) loan interest rates usually lower than traditional bank loan rates?","url":"https://dealroom.so/sba-loans/basics/are-sba-7-a-loan-interest-rates-usually-lower-than-traditional-bank-loan-rates"},{"question":"How do variable interest rates on SBA 7(a) loans compare to fixed rates?","url":"https://dealroom.so/sba-loans/basics/how-do-variable-interest-rates-on-sba-7-a-loans-compare-to-fixed-rates"},{"question":"How do SBA loan rates compare to conventional bank loan rates for business acquisitions?","url":"https://dealroom.so/sba-7a/questions/how-do-sba-loan-rates-compare-to-conventional-bank-loan-rates-for-business-acquisitions"}]},"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 Reference Rates Committee","url":"https://dealroom.so/glossary/alternative-reference-rates-committee","source_type":"DealRoom Data"}}