{"ok":true,"canonical_url":"https://dealroom.so/glossary/statutory-cap","api_url":"https://dealroom.so/api/public/glossary/statutory-cap","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":"statutory-cap","term":"Statutory Cap","group":"The loan itself","definition":"A legal limit set by statute on certain aspects of an SBA loan, most commonly the maximum interest rate or loan amount. Buyer cares because it defines the boundaries of what's possible with SBA financing.","what_it_means":"The SBA sets Statutory Caps on several loan features, including the maximum interest rate lenders can charge and the maximum total loan amount ($5 million for most 7(a) loans). Understand these caps to ensure your lender's terms are compliant and your financing needs fit within the program's limits.","url":"https://dealroom.so/glossary/statutory-cap","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":"maximum-allowable-cap","term":"Maximum Allowable Cap","url":"https://dealroom.so/glossary/maximum-allowable-cap"},{"slug":"maximum-loan-term","term":"Maximum Loan Term","url":"https://dealroom.so/glossary/maximum-loan-term"},{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"}],"related_questions":[{"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"},{"question":"How does an SBA 7(a) loan typically handle seasonal businesses for repayment capacity?","url":"https://dealroom.so/sba-7a/questions/how-does-an-sba-7-a-loan-typically-handle-seasonal-businesses-for-repayment-capacity"},{"question":"Are there caps on the interest rates lenders can charge for SBA 7(a) loans?","url":"https://dealroom.so/sba-loans/basics/are-there-caps-on-the-interest-rates-lenders-can-charge-for-sba-7-a-loans"},{"question":"How does the SBA ensure that lenders adhere to specific interest rate caps on 7(a) loans?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-ensure-that-lenders-adhere-to-specific-interest-rate-caps-on-7-a-loans"},{"question":"For a seller note on full standby, is it permissible for the accrued interest to capitalize or compound during the SBA 7(a) loan term?","url":"https://dealroom.so/for-lenders/questions/for-a-seller-note-on-full-standby-is-it-permissible-for-the-accrued-interest-to-capitalize"},{"question":"Are there specific limits on the amount of working capital that can be included in a 7(a) Working Capital Pilot Program loan?","url":"https://dealroom.so/for-lenders/questions/are-there-specific-limits-on-the-amount-of-working-capital-that-can-be-included-in-a-7-a-w"}]},"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 — Statutory Cap","url":"https://dealroom.so/glossary/statutory-cap","source_type":"DealRoom Data"}}