{"ok":true,"canonical_url":"https://dealroom.so/glossary/term-sofr","api_url":"https://dealroom.so/api/public/glossary/term-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":"term-sofr","term":"Term SOFR","group":"The loan itself","definition":"Term SOFR is a benchmark interest rate used for variable-rate SBA loans. It reflects the cost of borrowing cash overnight, providing a forward-looking rate for your loan's interest adjustments.","what_it_means":"For an SBA 7(a) loan, your variable interest rate will likely be tied to Term SOFR plus a lender's spread. This means your monthly payments can change as Term SOFR fluctuates. Understand how often your rate resets, as this directly impacts your cash flow after debt service.","url":"https://dealroom.so/glossary/term-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":"variable-interest-rate","term":"Variable interest rate","url":"https://dealroom.so/glossary/variable-interest-rate"},{"slug":"libor","term":"LIBOR","url":"https://dealroom.so/glossary/libor"},{"slug":"spread","term":"Spread","url":"https://dealroom.so/glossary/spread"},{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"}],"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":"Can an SBA 7(a) loan finance tenant improvements on leased property if the lease term matches the loan term?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-tenant-improvements-on-leased-property-if-the-lease-term-match"},{"question":"If I am buying a business that leases its property, can I get a longer loan term if the lease is long-term?","url":"https://dealroom.so/sba-7a/questions/if-i-am-buying-a-business-that-leases-its-property-can-i-get-a-longer-loan-term-if-the-lea"},{"question":"What is the typical repayment term for working capital only?","url":"https://dealroom.so/sba-loans/basics/what-is-the-typical-repayment-term-for-working-capital-only"}]},"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 SOFR","url":"https://dealroom.so/glossary/term-sofr","source_type":"DealRoom Data"}}