{"ok":true,"canonical_url":"https://dealroom.so/glossary/term-secured-overnight-financing-rate","api_url":"https://dealroom.so/api/public/glossary/term-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":"term-secured-overnight-financing-rate","term":"Term Secured Overnight Financing Rate","aka":"Term SOFR","group":"The loan itself","definition":"This is a benchmark interest rate based on the cost of borrowing cash overnight, used for variable rate loans. It has replaced LIBOR as a common index for SBA loan interest rates.","what_it_means":"Many SBA 7(a) loans use Term SOFR as the base rate for their variable interest rates, to which a lender's spread is added. Understand how Term SOFR fluctuations will impact your monthly loan payments. Ensure your financial projections account for potential increases in this variable rate.","url":"https://dealroom.so/glossary/term-secured-overnight-financing-rate","official_sources":[{"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"},{"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-interest-rate","term":"Variable interest rate","url":"https://dealroom.so/glossary/variable-interest-rate"},{"slug":"spread","term":"Spread","url":"https://dealroom.so/glossary/spread"},{"slug":"base-rate","term":"Base rate","url":"https://dealroom.so/glossary/base-rate"},{"slug":"sofr","term":"SOFR","url":"https://dealroom.so/glossary/sofr"}],"related_questions":[{"question":"Can a lender unilaterally increase the interest rate on a variable rate 7(a) loan during its term?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-unilaterally-increase-the-interest-rate-on-a-variable-rate-7-a-loan-during-it"},{"question":"Can a 7(a) lender unilaterally increase the interest rate on a variable rate loan during its term?","url":"https://dealroom.so/for-lenders/questions/can-a-7-a-lender-unilaterally-increase-the-interest-rate-on-a-variable-rate-loan-during-it"},{"question":"Can a lender modify a 7(a) loan's term or interest rate in E-Tran after initial authorization?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-modify-a-7-a-loan-s-term-or-interest-rate-in-e-tran-after-initial-authorizati"},{"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"}]},"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 — Term Secured Overnight Financing Rate","url":"https://dealroom.so/glossary/term-secured-overnight-financing-rate","source_type":"DealRoom Data"}}