{"ok":true,"canonical_url":"https://dealroom.so/glossary/hedging-strategy","api_url":"https://dealroom.so/api/public/glossary/hedging-strategy","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":"hedging-strategy","term":"Hedging Strategy","group":"Doing the deal","definition":"A financial technique used to offset potential losses from market fluctuations, such as rising interest rates on a variable-rate loan. Buyers can use it to manage risk.","what_it_means":"With a variable-rate SBA loan, your payments can increase if interest rates rise. A hedging strategy, like an interest rate swap or cap, could fix your rate or limit its upside. While less common for small SBA loans due to cost and complexity, larger deals might explore it to mitigate interest rate risk and stabilize cash flow.","url":"https://dealroom.so/glossary/hedging-strategy","official_sources":[],"related":[{"slug":"variable-rate","term":"Variable rate","url":"https://dealroom.so/glossary/variable-rate"},{"slug":"sofr-abr","term":"SOFR ABR","url":"https://dealroom.so/glossary/sofr-abr"},{"slug":"cash-flow-projection","term":"Cash flow projection","url":"https://dealroom.so/glossary/cash-flow-projection"},{"slug":"risk-management","term":"Risk Management","url":"https://dealroom.so/glossary/risk-management"}],"related_questions":[]},"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 — Hedging Strategy","url":"https://dealroom.so/glossary/hedging-strategy","source_type":"DealRoom Data"}}