{"ok":true,"canonical_url":"https://dealroom.so/glossary/risk-adjusted-interest-rate","api_url":"https://dealroom.so/api/public/glossary/risk-adjusted-interest-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":"risk-adjusted-interest-rate","term":"Risk-adjusted interest rate","group":"The loan itself","definition":"This is the interest rate a lender charges, factoring in the perceived risk of the borrower and the business. Higher risk generally means a higher interest rate for the buyer.","what_it_means":"SBA loan interest rates have a maximum spread over the Prime Rate or Term SOFR. Your specific rate within that range will be risk-adjusted by the lender based on your creditworthiness, the business's cash flow, and collateral. A stronger deal means a better rate, directly impacting your debt service.","url":"https://dealroom.so/glossary/risk-adjusted-interest-rate","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-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":"prime-rate","term":"Prime Rate","url":"https://dealroom.so/glossary/prime-rate"}],"related_questions":[{"question":"How are variable interest rates for SBA 7(a) loans typically determined and adjusted?","url":"https://dealroom.so/sba-7a/questions/how-are-variable-interest-rates-for-sba-7-a-loans-typically-determined-and-adjusted"},{"question":"What happens to the interest rate on an SBA 7(a) loan if general market interest rates go down significantly?","url":"https://dealroom.so/sba-loans/basics/what-happens-to-the-interest-rate-on-an-sba-7-a-loan-if-general-market-interest-rates-go-d"},{"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 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 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"}]},"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 — Risk-adjusted interest rate","url":"https://dealroom.so/glossary/risk-adjusted-interest-rate","source_type":"DealRoom Data"}}