{"ok":true,"canonical_url":"https://dealroom.so/glossary/federal-funds-effective-rate","api_url":"https://dealroom.so/api/public/glossary/federal-funds-effective-rate","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":"federal-funds-effective-rate","term":"Federal Funds Effective Rate","group":"The loan itself","definition":"The interest rate at which depository institutions lend reserve balances to other depository institutions overnight. It's a key indicator of short-term interest rates.","what_it_means":"While not directly used to set your 7(a) loan's variable rate (which uses WSJ Prime or Term SOFR), changes to the Federal Funds Effective Rate often influence these base rates. Monitor it to anticipate potential shifts in your loan payments.","url":"https://dealroom.so/glossary/federal-funds-effective-rate","official_sources":[],"related":[{"slug":"variable-interest-rate","term":"Variable interest rate","url":"https://dealroom.so/glossary/variable-interest-rate"},{"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"},{"slug":"base-rate","term":"Base rate","url":"https://dealroom.so/glossary/base-rate"}],"related_questions":[{"question":"What happens if a required personal guarantor lacks sufficient personal assets for an effective guaranty?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-a-required-personal-guarantor-lacks-sufficient-personal-assets-for-an-effe"},{"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 'Prime Rate' when talking about SBA 7(a) loan rates?","url":"https://dealroom.so/sba-loans/basics/what-is-the-prime-rate-when-talking-about-sba-7-a-loan-rates"},{"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 if a business applicant has outstanding federal tax liens or delinquencies?","url":"https://dealroom.so/for-lenders/questions/what-if-a-business-applicant-has-outstanding-federal-tax-liens-or-delinquencies"},{"question":"What if a borrower has outstanding judgments or liens from non-federal entities?","url":"https://dealroom.so/for-lenders/questions/what-if-a-borrower-has-outstanding-judgments-or-liens-from-non-federal-entities"}]},"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 — Federal Funds Effective Rate","url":"https://dealroom.so/glossary/federal-funds-effective-rate","source_type":"DealRoom Data"}}