{"ok":true,"canonical_url":"https://dealroom.so/glossary/sba-optional-peg-rate","api_url":"https://dealroom.so/api/public/glossary/sba-optional-peg-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":"sba-optional-peg-rate","term":"SBA Optional Peg Rate","group":"The loan itself","definition":"An alternative base rate that lenders can use for variable-rate SBA loans, instead of the WSJ Prime Rate or Term SOFR. It's set by the SBA and adjusts periodically, impacting your loan's interest rate.","what_it_means":"For variable rate SBA 7(a) loans, your interest rate is calculated as a base rate (often WSJ Prime or Term SOFR) plus a spread. The SBA Optional Peg Rate is another allowable base rate. Understand which base rate your lender is using and how frequently it adjusts, as this directly affects your monthly principal and interest payments.","url":"https://dealroom.so/glossary/sba-optional-peg-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":"term-sofr","term":"Term SOFR","url":"https://dealroom.so/glossary/term-sofr"},{"slug":"spread","term":"Spread","url":"https://dealroom.so/glossary/spread"}],"related_questions":[{"question":"What is the difference between Prime Rate and the SBA optional peg rate for 7(a) loans?","url":"https://dealroom.so/sba-loans/basics/what-is-the-difference-between-prime-rate-and-the-sba-optional-peg-rate-for-7-a-loans"},{"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 '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 specific alternative base rates are permissible for variable rate 7(a) loans?","url":"https://dealroom.so/for-lenders/questions/what-specific-alternative-base-rates-are-permissible-for-variable-rate-7-a-loans"},{"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":"Are SBA 7(a) loan interest rates typically fixed or variable, and what base rate index is commonly used?","url":"https://dealroom.so/sba-7a/questions/are-sba-7-a-loan-interest-rates-typically-fixed-or-variable-and-what-base-rate-index-is-co"}]},"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 — SBA Optional Peg Rate","url":"https://dealroom.so/glossary/sba-optional-peg-rate","source_type":"DealRoom Data"}}