{"ok":true,"canonical_url":"https://dealroom.so/glossary/base-rate-index","api_url":"https://dealroom.so/api/public/glossary/base-rate-index","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":"base-rate-index","term":"Base Rate Index","group":"The loan itself","definition":"This is the specific benchmark interest rate, such as WSJ Prime or Term SOFR, that an SBA loan's variable interest rate is tied to. Your loan rate is this index plus a lender's spread.","what_it_means":"When evaluating loan offers, compare not just the total interest rate but also the specific base rate index used. Understand its historical volatility and how frequently it adjusts, as this impacts your future debt service.","url":"https://dealroom.so/glossary/base-rate-index","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":"alternative-base-rates","term":"Alternative Base Rates","url":"https://dealroom.so/glossary/alternative-base-rates"},{"slug":"wsj-prime","term":"WSJ Prime","url":"https://dealroom.so/glossary/wsj-prime"},{"slug":"term-sofr","term":"Term SOFR","url":"https://dealroom.so/glossary/term-sofr"}],"related_questions":[{"question":"Are SBA 7(a) loan interest rates typically fixed or variable, and what base rate index is commonly used?","url":"https://dealroom.so/sba-7a/questions/are-sba-7-a-loan-interest-rates-typically-fixed-or-variable-and-what-base-rate-index-is-co"},{"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, 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"},{"question":"What are the currently approved base rate options for variable rate 7(a) loans?","url":"https://dealroom.so/for-lenders/questions/what-are-the-currently-approved-base-rate-options-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 permitted alternative base rate options for variable-rate 7(a) loans beyond the Prime Rate?","url":"https://dealroom.so/for-lenders/questions/what-are-the-permitted-alternative-base-rate-options-for-variable-rate-7-a-loans-beyond-th"}]},"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 — Base Rate Index","url":"https://dealroom.so/glossary/base-rate-index","source_type":"DealRoom Data"}}