{"ok":true,"canonical_url":"https://dealroom.so/glossary/secured-overnight-financing-rate","api_url":"https://dealroom.so/api/public/glossary/secured-overnight-financing-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":"secured-overnight-financing-rate","term":"Secured Overnight Financing Rate","aka":"SOFR","group":"The loan itself","definition":"SOFR is a new benchmark interest rate used for many variable-rate loans, replacing LIBOR. Like WSJ Prime, a \"spread\" is added to SOFR to determine your actual loan interest rate.","what_it_means":"For SBA 7(a) loans, lenders are increasingly using Term SOFR as the base rate for variable interest loans. Be aware if your loan is tied to SOFR, as your payments will adjust quarterly or monthly based on its fluctuations. Factor potential rate increases into your cash flow projections.","url":"https://dealroom.so/glossary/secured-overnight-financing-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"}],"related":[{"slug":"variable-rate-loan","term":"Variable Rate Loan","url":"https://dealroom.so/glossary/variable-rate-loan"},{"slug":"spread","term":"Spread","url":"https://dealroom.so/glossary/spread"},{"slug":"prime-rate","term":"Prime Rate","url":"https://dealroom.so/glossary/prime-rate"},{"slug":"wsj-prime","term":"WSJ Prime","url":"https://dealroom.so/glossary/wsj-prime"}],"related_questions":[{"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":"Is a loan secured by personal assets eligible for the down payment?","url":"https://dealroom.so/sba-7a/questions/is-a-loan-secured-by-personal-assets-eligible-for-the-down-payment"},{"question":"Can a seller note on full standby still be secured by business assets?","url":"https://dealroom.so/sba-7a/questions/can-a-seller-note-on-full-standby-still-be-secured-by-business-assets"},{"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"}]},"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 — Secured Overnight Financing Rate","url":"https://dealroom.so/glossary/secured-overnight-financing-rate","source_type":"DealRoom Data"}}