{"ok":true,"canonical_url":"https://dealroom.so/glossary/interest-rate-spread","api_url":"https://dealroom.so/api/public/glossary/interest-rate-spread","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-spread","term":"Interest Rate Spread","group":"The loan itself","definition":"This is the fixed percentage added to a fluctuating base interest rate (like WSJ Prime or Term SOFR) to determine your actual loan interest rate. It represents the lender's profit and risk assessment.","what_it_means":"SBA 7(a) loan interest rates are variable, calculated as a base rate plus a spread. While the base rate changes, your spread remains fixed for the loan's life. Lenders have caps on how high they can set this spread. Understand your specific spread, as it directly impacts your monthly interest payments.","url":"https://dealroom.so/glossary/interest-rate-spread","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"}],"related":[{"slug":"variable-rate","term":"Variable rate","url":"https://dealroom.so/glossary/variable-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 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 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 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 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"}]},"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 Spread","url":"https://dealroom.so/glossary/interest-rate-spread","source_type":"DealRoom Data"}}