{"ok":true,"canonical_url":"https://dealroom.so/glossary/prime-rate","api_url":"https://dealroom.so/api/public/glossary/prime-rate","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":"prime-rate","term":"Prime Rate","group":"The loan itself","definition":"The Prime Rate is a benchmark interest rate used by banks, often for variable-rate loans. For a buyer, this rate directly influences the interest payments on your SBA 7(a) loan, as your rate will be the Prime Rate plus a spread.","what_it_means":"SBA 7(a) loans typically have variable interest rates tied to either the Prime Rate or Term SOFR. Your lender will quote your loan rate as Prime plus a fixed percentage, known as the spread. Keep an eye on the Wall Street Journal Prime Rate as it fluctuates, impacting your monthly debt service payments.","url":"https://dealroom.so/glossary/prime-rate","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":"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":"spread","term":"Spread","url":"https://dealroom.so/glossary/spread"},{"slug":"sofr","term":"SOFR","url":"https://dealroom.so/glossary/sofr"}],"related_questions":[{"question":"What is the 'Prime Rate' when talking about SBA 7(a) loan rates?","url":"https://dealroom.so/sba-loans/basics/what-is-the-prime-rate-when-talking-about-sba-7-a-loan-rates"},{"question":"What alternative base rates are available for variable-rate 7(a) loans besides the Wall Street Journal Prime rate?","url":"https://dealroom.so/for-lenders/questions/what-alternative-base-rates-are-available-for-variable-rate-7-a-loans-besides-the-wall-str"},{"question":"What is the Wall Street Journal Prime Rate's role in SBA 7(a) loan interest rates?","url":"https://dealroom.so/sba-loans/basics/what-is-the-wall-street-journal-prime-rate-s-role-in-sba-7-a-loan-interest-rates"},{"question":"What are the current alternative base rate options for variable rate 7(a) loans, besides Prime Rate?","url":"https://dealroom.so/for-lenders/questions/what-are-the-current-alternative-base-rate-options-for-variable-rate-7-a-loans-besides-pri"},{"question":"What is the difference between Prime Rate and an SBA 7(a) loan rate?","url":"https://dealroom.so/sba-loans/basics/what-is-the-difference-between-prime-rate-and-an-sba-7-a-loan-rate"},{"question":"What are the permitted alternative base rate options for variable-rate 7(a) loans beyond the Prime Rate?","url":"https://dealroom.so/for-lenders/questions/what-are-the-permitted-alternative-base-rate-options-for-variable-rate-7-a-loans-beyond-th"}]},"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 — Prime Rate","url":"https://dealroom.so/glossary/prime-rate","source_type":"DealRoom Data"}}