{"ok":true,"canonical_url":"https://dealroom.so/glossary/interest-rate-modification","api_url":"https://dealroom.so/api/public/glossary/interest-rate-modification","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":"interest-rate-modification","term":"Interest Rate Modification","group":"Doing the deal","definition":"This is when the interest rate on your SBA loan changes, usually for variable-rate loans. As a buyer, you need to understand how your rate can fluctuate and what triggers these changes.","what_it_means":"SBA 7(a) loans can have either a fixed or variable interest rate. If your loan has a variable rate, it will be tied to a base rate like WSJ Prime or Term SOFR plus a spread, and will adjust periodically. Understand the terms of your note, especially when and how your payments can change. Plan for potential rate increases in your cash flow projections.","url":"https://dealroom.so/glossary/interest-rate-modification","official_sources":[{"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"},{"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"}],"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":"spread","term":"Spread","url":"https://dealroom.so/glossary/spread"},{"slug":"prime-rate","term":"Prime Rate","url":"https://dealroom.so/glossary/prime-rate"}],"related_questions":[{"question":"What is the difference between a fixed interest rate and a variable interest rate on an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-difference-between-a-fixed-interest-rate-and-a-variable-interest-rate-on-an-sb"},{"question":"How is the interest rate cap determined for a variable rate 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-is-the-interest-rate-cap-determined-for-a-variable-rate-7-a-loan"},{"question":"How often can the interest rate on a variable-rate SBA 7(a) loan adjust?","url":"https://dealroom.so/sba-7a/questions/how-often-can-the-interest-rate-on-a-variable-rate-sba-7-a-loan-adjust"},{"question":"How often can the interest rate change on a variable-rate SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/how-often-can-the-interest-rate-change-on-a-variable-rate-sba-7-a-loan"},{"question":"How often can the interest rate change on my variable rate SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/how-often-can-the-interest-rate-change-on-my-variable-rate-sba-7-a-loan"},{"question":"Can a lender unilaterally increase the interest rate on a variable rate 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-unilaterally-increase-the-interest-rate-on-a-variable-rate-7-a-loan"}]},"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 — Interest Rate Modification","url":"https://dealroom.so/glossary/interest-rate-modification","source_type":"DealRoom Data"}}