{"ok":true,"canonical_url":"https://dealroom.so/glossary/fixed-spread-sofr","api_url":"https://dealroom.so/api/public/glossary/fixed-spread-sofr","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":"fixed-spread-sofr","term":"Fixed Spread SOFR","group":"The loan itself","definition":"A common index used for variable interest rates on SBA 7(a) loans, consisting of the SOFR rate plus a fixed spread. This combination determines a portion of your actual interest rate.","what_it_means":"For a variable rate SBA loan, your interest rate will often be Fixed Spread SOFR + a margin. The SOFR component fluctuates, while the spread is fixed by the lender. Understand how this index works and its historical volatility, as it directly impacts your future monthly loan payments and overall debt service.","url":"https://dealroom.so/glossary/fixed-spread-sofr","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"},{"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":"sofr","term":"SOFR","url":"https://dealroom.so/glossary/sofr"},{"slug":"variable-interest-rate","term":"Variable interest rate","url":"https://dealroom.so/glossary/variable-interest-rate"},{"slug":"interest-rate-adjustment","term":"Interest rate adjustment","url":"https://dealroom.so/glossary/interest-rate-adjustment"},{"slug":"spread","term":"Spread","url":"https://dealroom.so/glossary/spread"}],"related_questions":[{"question":"What is the difference between the base rate and the spread on an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-difference-between-the-base-rate-and-the-spread-on-an-sba-7-a-loan"},{"question":"What are the maximum allowable interest rates for variable rate 7(a) loans, including the permissible spread?","url":"https://dealroom.so/for-lenders/questions/what-are-the-maximum-allowable-interest-rates-for-variable-rate-7-a-loans-including-the-pe"},{"question":"What is the maximum interest rate spread a lender can add over the base rate for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-is-the-maximum-interest-rate-spread-a-lender-can-add-over-the-base-rate-for-an-sba-7-"},{"question":"What are the specific requirements for an alternative base rate, like SOFR, to be used for a 7(a) variable rate loan?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-requirements-for-an-alternative-base-rate-like-sofr-to-be-used-for-a"},{"question":"If a lender wishes to use SOFR as a base rate for a variable rate 7(a) loan, what specific documentation is required?","url":"https://dealroom.so/for-lenders/questions/if-a-lender-wishes-to-use-sofr-as-a-base-rate-for-a-variable-rate-7-a-loan-what-specific-d"},{"question":"Can a lender change the base rate option (e.g., from Prime to SOFR) for a variable rate 7(a) loan after closing?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-change-the-base-rate-option-e-g-from-prime-to-sofr-for-a-variable-rate-7-a-lo"}]},"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 — Fixed Spread SOFR","url":"https://dealroom.so/glossary/fixed-spread-sofr","source_type":"DealRoom Data"}}