{"ok":true,"canonical_url":"https://dealroom.so/glossary/variable-rate-loan","api_url":"https://dealroom.so/api/public/glossary/variable-rate-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-rate-loan","term":"Variable Rate 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 SOFR, plus a fixed spread. This impacts your monthly payment fluctuations.","what_it_means":"Most SBA 7(a) loans are variable rate. Your monthly payments will adjust as the underlying index changes. Understand the current rate environment and stress-test your cash flow projections against potential rate increases to ensure the business can still service the debt.","url":"https://dealroom.so/glossary/variable-rate-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"}],"related":[{"slug":"variable-rate","term":"Variable rate","url":"https://dealroom.so/glossary/variable-rate"},{"slug":"wsj-prime","term":"WSJ Prime","url":"https://dealroom.so/glossary/wsj-prime"},{"slug":"sofr","term":"SOFR","url":"https://dealroom.so/glossary/sofr"},{"slug":"spread","term":"Spread","url":"https://dealroom.so/glossary/spread"}],"related_questions":[{"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":"What are the current alternative base rate options for variable rate 7(a) loans, besides Prime Rate?","url":"https://dealroom.so/for-lenders/questions/what-are-the-current-alternative-base-rate-options-for-variable-rate-7-a-loans-besides-pri"},{"question":"Are fixed-rate or variable-rate options more common for SBA 7(a) loans?","url":"https://dealroom.so/sba-loans/basics/are-fixed-rate-or-variable-rate-options-more-common-for-sba-7-a-loans"},{"question":"What are the currently approved base rate options for variable rate 7(a) loans?","url":"https://dealroom.so/for-lenders/questions/what-are-the-currently-approved-base-rate-options-for-variable-rate-7-a-loans"},{"question":"What are the current alternative base rate options for variable rate 7(a) loans?","url":"https://dealroom.so/for-lenders/questions/what-are-the-current-alternative-base-rate-options-for-variable-rate-7-a-loans"},{"question":"What are the permitted alternative base rate options for variable-rate 7(a) loans beyond the Prime Rate?","url":"https://dealroom.so/for-lenders/questions/what-are-the-permitted-alternative-base-rate-options-for-variable-rate-7-a-loans-beyond-th"}]},"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 Rate Loan","url":"https://dealroom.so/glossary/variable-rate-loan","source_type":"DealRoom Data"}}