{"ok":true,"canonical_url":"https://dealroom.so/glossary/variable-loan","api_url":"https://dealroom.so/api/public/glossary/variable-loan","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":"variable-loan","term":"Variable loan","group":"The loan itself","definition":"A loan where the interest rate can change over time, typically tied to an index like the WSJ Prime Rate or Term SOFR, plus a fixed spread. This means your monthly payments can fluctuate.","what_it_means":"Most SBA 7(a) loans are variable-rate, adjusting quarterly. Understand the index your loan is tied to and the spread the lender charges. Model different interest rate scenarios in your financial projections to assess the impact on your cash flow after debt service.","url":"https://dealroom.so/glossary/variable-loan","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":"wsj-prime","term":"WSJ Prime","url":"https://dealroom.so/glossary/wsj-prime"},{"slug":"term-sofr","term":"Term SOFR","url":"https://dealroom.so/glossary/term-sofr"},{"slug":"spread","term":"Spread","url":"https://dealroom.so/glossary/spread"}],"related_questions":[{"question":"Are interest rates on SBA 7(a) loans fixed or variable?","url":"https://dealroom.so/sba-loans/basics/are-interest-rates-on-sba-7-a-loans-fixed-or-variable"},{"question":"How frequently do variable interest rates for SBA 7(a) loans typically adjust?","url":"https://dealroom.so/sba-loans/basics/how-frequently-do-variable-interest-rates-for-sba-7-a-loans-typically-adjust"},{"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"},{"question":"What alternative base rate options are available for variable rate 7(a) loans?","url":"https://dealroom.so/for-lenders/questions/what-alternative-base-rate-options-are-available-for-variable-rate-7-a-loans"},{"question":"How are variable interest rates for SBA 7(a) loans typically determined and adjusted?","url":"https://dealroom.so/sba-7a/questions/how-are-variable-interest-rates-for-sba-7-a-loans-typically-determined-and-adjusted"},{"question":"How do variable interest rates on SBA 7(a) loans compare to fixed rates?","url":"https://dealroom.so/sba-loans/basics/how-do-variable-interest-rates-on-sba-7-a-loans-compare-to-fixed-rates"}]},"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 — Variable loan","url":"https://dealroom.so/glossary/variable-loan","source_type":"DealRoom Data"}}