{"ok":true,"canonical_url":"https://dealroom.so/glossary/sofr","api_url":"https://dealroom.so/api/public/glossary/sofr","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":"sofr","term":"SOFR","group":"The loan itself","definition":"SOFR, or Secured Overnight Financing Rate, is another benchmark interest rate for variable-rate loans, replacing LIBOR. As a buyer, your SBA 7(a) loan might be tied to Term SOFR, affecting your interest payments.","what_it_means":"The SBA now allows 7(a) loan rates to be indexed to Term SOFR as an alternative to the Prime Rate. Like Prime, your loan's interest rate will be Term SOFR plus a spread. Understand which index your lender uses and its historical volatility when evaluating your loan terms and future cash flow impact.","url":"https://dealroom.so/glossary/sofr","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":"prime-rate","term":"Prime Rate","url":"https://dealroom.so/glossary/prime-rate"},{"slug":"variable-rate","term":"Variable rate","url":"https://dealroom.so/glossary/variable-rate"},{"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 are the specific requirements for an alternative base rate, like SOFR, to be used for a 7(a) variable rate loan?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-requirements-for-an-alternative-base-rate-like-sofr-to-be-used-for-a"},{"question":"If a lender wishes to use SOFR as a base rate for a variable rate 7(a) loan, what specific documentation is required?","url":"https://dealroom.so/for-lenders/questions/if-a-lender-wishes-to-use-sofr-as-a-base-rate-for-a-variable-rate-7-a-loan-what-specific-d"},{"question":"Can a lender change the base rate option (e.g., from Prime to SOFR) for a variable rate 7(a) loan after closing?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-change-the-base-rate-option-e-g-from-prime-to-sofr-for-a-variable-rate-7-a-lo"}]},"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 — SOFR","url":"https://dealroom.so/glossary/sofr","source_type":"DealRoom Data"}}