{"ok":true,"canonical_url":"https://dealroom.so/glossary/sofr-abr","api_url":"https://dealroom.so/api/public/glossary/sofr-abr","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-abr","term":"SOFR ABR","group":"The loan itself","definition":"An acronym for Secured Overnight Financing Rate, Adjusted Base Rate, which is a common index used to determine the variable interest rate on SBA 7(a) loans. It fluctuates daily, impacting your monthly payment.","what_it_means":"Most SBA 7(a) loans have variable interest rates tied to a base rate plus a spread. SOFR ABR is the current standard base rate for new SBA loans, replacing LIBOR. This means your interest payments will go up or down with market rate changes, so you need to factor this variability into your cash flow projections.","url":"https://dealroom.so/glossary/sofr-abr","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":"sofr","term":"SOFR","url":"https://dealroom.so/glossary/sofr"},{"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":"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"},{"question":"Are U.S. citizens residing abroad eligible to apply for an SBA 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/are-u-s-citizens-residing-abroad-eligible-to-apply-for-an-sba-7-a-loan"},{"question":"What are specific requirements for a U.S. citizen residing abroad to be an eligible 7(a) borrower?","url":"https://dealroom.so/for-lenders/questions/what-are-specific-requirements-for-a-u-s-citizen-residing-abroad-to-be-an-eligible-7-a-bor"},{"question":"How does a lender confirm an owner's U.S. citizenship if they were born in a U.S. territory or abroad to U.S. parents?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-confirm-an-owner-s-u-s-citizenship-if-they-were-born-in-a-u-s-territory-"}]},"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 ABR","url":"https://dealroom.so/glossary/sofr-abr","source_type":"DealRoom Data"}}