{"ok":true,"canonical_url":"https://dealroom.so/glossary/basis-point","api_url":"https://dealroom.so/api/public/glossary/basis-point","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":"basis-point","term":"Basis Point","aka":"bp","group":"The loan itself","definition":"A basis point is one-hundredth of a percentage point (0.01%). It's used to describe small changes in interest rates or other financial percentages.","what_it_means":"Your SBA 7(a) loan's interest rate is often quoted as a spread over a base rate like WSJ Prime or Term SOFR. For example, a spread of 250 basis points means 2.50% above the base rate. Understand how basis points affect your total interest cost.","url":"https://dealroom.so/glossary/basis-point","official_sources":[],"related":[{"slug":"variable-rate","term":"Variable rate","url":"https://dealroom.so/glossary/variable-rate"},{"slug":"wsj-prime","term":"WSJ Prime","url":"https://dealroom.so/glossary/wsj-prime"},{"slug":"spread","term":"Spread","url":"https://dealroom.so/glossary/spread"},{"slug":"interest-only-payment-period","term":"Interest-Only Payment Period","url":"https://dealroom.so/glossary/interest-only-payment-period"}],"related_questions":[{"question":"What is the typical starting point to find an SBA 7(a) lender?","url":"https://dealroom.so/sba-loans/basics/what-is-the-typical-starting-point-to-find-an-sba-7-a-lender"},{"question":"What is the typical starting point to find an SBA 7(a) lender for a business acquisition?","url":"https://dealroom.so/sba-7a/questions/what-is-the-typical-starting-point-to-find-an-sba-7-a-lender-for-a-business-acquisition"},{"question":"At what point in the loan term does the prepayment penalty typically no longer apply for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/at-what-point-in-the-loan-term-does-the-prepayment-penalty-typically-no-longer-apply-for-a"},{"question":"What are the main points a lender considers when evaluating management experience for a 7(a) acquisition loan?","url":"https://dealroom.so/for-lenders/questions/what-are-the-main-points-a-lender-considers-when-evaluating-management-experience-for-a-7-"},{"question":"What specific data points, beyond the loan amount, are most critical for matching the final executed loan documents to ensure guaranty validity?","url":"https://dealroom.so/for-lenders/questions/what-specific-data-points-beyond-the-loan-amount-are-most-critical-for-matching-the-final-"}]},"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 — Basis Point","url":"https://dealroom.so/glossary/basis-point","source_type":"DealRoom Data"}}