{"ok":true,"canonical_url":"https://dealroom.so/glossary/interest-rate-risk","api_url":"https://dealroom.so/api/public/glossary/interest-rate-risk","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-risk","term":"Interest Rate Risk","group":"Reading the business","definition":"Interest rate risk is the potential for changes in market interest rates to negatively affect your loan payments. This risk primarily applies to variable rate loans.","what_it_means":"If your SBA 7(a) loan has a variable interest rate, your monthly payment will fluctuate with market rates. Higher rates mean higher payments, which can reduce your cash flow after debt service and impact the business's profitability. Assess the business's ability to absorb potential rate increases when choosing your loan type.","url":"https://dealroom.so/glossary/interest-rate-risk","official_sources":[],"related":[{"slug":"variable-rate","term":"Variable rate","url":"https://dealroom.so/glossary/variable-rate"},{"slug":"fixed-interest-rate","term":"Fixed interest rate","url":"https://dealroom.so/glossary/fixed-interest-rate"},{"slug":"dscr","term":"DSCR","url":"https://dealroom.so/glossary/dscr"},{"slug":"cash-flow-after-debt-service","term":"Cash flow after debt service","url":"https://dealroom.so/glossary/cash-flow-after-debt-service"}],"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 Risk","url":"https://dealroom.so/glossary/interest-rate-risk","source_type":"DealRoom Data"}}