{"ok":true,"canonical_url":"https://dealroom.so/glossary/cost-of-funds","api_url":"https://dealroom.so/api/public/glossary/cost-of-funds","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":"cost-of-funds","term":"Cost of Funds","group":"The loan itself","definition":"This refers to the interest rate a bank pays to borrow money from other financial institutions or to depositors. It's a key factor in how they price your loan.","what_it_means":"While not directly on your loan documents, a lender's cost of funds influences the margin they offer on your SBA 7(a) loan. A higher cost of funds for them might mean a higher margin for you. This is an internal bank metric, but understanding it gives context to lending rates.","url":"https://dealroom.so/glossary/cost-of-funds","official_sources":[],"related":[{"slug":"margin","term":"Margin","url":"https://dealroom.so/glossary/margin"},{"slug":"index","term":"Index","url":"https://dealroom.so/glossary/index"},{"slug":"variable-rate","term":"Variable rate","url":"https://dealroom.so/glossary/variable-rate"},{"slug":"interest-payment","term":"Interest Payment","url":"https://dealroom.so/glossary/interest-payment"}],"related_questions":[{"question":"What factors primarily influence the premium cost of business life insurance?","url":"https://dealroom.so/sba-7a/questions/what-factors-primarily-influence-the-premium-cost-of-business-life-insurance"},{"question":"Can an SBA 7(a) loan cover the cost of inventory for a business?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-cover-the-cost-of-inventory-for-a-business"},{"question":"Can an SBA 7(a) loan cover the cost of a business valuation or appraisal?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-cover-the-cost-of-a-business-valuation-or-appraisal"},{"question":"What percentage of the project cost does the SBA typically expect as a down payment?","url":"https://dealroom.so/sba-loans/basics/what-percentage-of-the-project-cost-does-the-sba-typically-expect-as-a-down-payment"},{"question":"Can an SBA 7(a) loan cover the cost of a franchise transfer fee in an acquisition?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-cover-the-cost-of-a-franchise-transfer-fee-in-an-acquisition"},{"question":"Can an SBA 7(a) loan finance the cost of purchasing a commercial vehicle fleet as part of a business acquisition?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-the-cost-of-purchasing-a-commercial-vehicle-fleet-as-part-of-a"}]},"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 — Cost of Funds","url":"https://dealroom.so/glossary/cost-of-funds","source_type":"DealRoom Data"}}