{"ok":true,"canonical_url":"https://dealroom.so/sba-loans/basics/does-the-sba-set-all-the-specific-loan-terms-like-interest-rates-and-repayment","api_url":"https://dealroom.so/api/public/questions/does-the-sba-set-all-the-specific-loan-terms-like-interest-rates-and-repayment","question":"Does the SBA set all the specific loan terms like interest rates and repayment?","topic":"Common myths","audience":"new","bot_mode":"buyer","short_answer":"No, the SBA sets general guidelines for loan terms, but the individual lending bank (not the SBA directly) sets the specific interest rate, repayment schedule, and other terms within those guidelines.","rule":"The SBA establishes maximum interest rates and repayment terms, and specific collateral and personal guaranty requirements. However, within these parameters, the lender negotiates the exact terms with the borrower, considering the loan's risk and the market.","example":"For a $500,000 SBA 7(a) loan, the SBA dictates a maximum interest rate of Prime + 2.75% and a maximum term of 10 years for a business acquisition. A lender might offer Prime + 2.50% over 8 years, fitting within SBA rules.","what_lenders_check":"Lenders must ensure all negotiated terms, including interest rates, fees, and repayment schedules, comply with current SBA policies. Non-compliance could result in the SBA denying its guaranty.","required_facts":["Lender negotiates terms","SBA sets guidelines","Max rates/terms","Compliance"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","7(a) Loan Program Terms, Conditions, and Eligibility","13 CFR Part 120 - Business Loans"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"7(a) Loan Program Terms, Conditions, and Eligibility","url":"https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"}],"related_questions":[{"question":"Do I need a perfect credit score to qualify for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/do-i-need-a-perfect-credit-score-to-qualify-for-an-sba-7-a-loan"},{"question":"Does the SBA guarantee on a loan mean I am not responsible for repayment?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-guarantee-on-a-loan-mean-i-am-not-responsible-for-repayment"},{"question":"Am I allowed to use SBA 7(a) loan funds to pay my personal expenses?","url":"https://dealroom.so/sba-loans/basics/am-i-allowed-to-use-sba-7-a-loan-funds-to-pay-my-personal-expenses"},{"question":"Are SBA 7(a) loans only for businesses unable to get traditional bank loans?","url":"https://dealroom.so/sba-loans/basics/are-sba-7-a-loans-only-for-businesses-unable-to-get-traditional-bank-loans"},{"question":"Is it true that SBA 7(a) loans are only for businesses that can't get other financing?","url":"https://dealroom.so/sba-loans/basics/is-it-true-that-sba-7-a-loans-are-only-for-businesses-that-can-t-get-other-financing"},{"question":"Is an SBA 7(a) loan meant only for businesses facing financial difficulties?","url":"https://dealroom.so/sba-loans/basics/is-an-sba-7-a-loan-meant-only-for-businesses-facing-financial-difficulties"}],"related_terms":[{"term":"Loan Terms","url":"https://dealroom.so/glossary/loan-terms"},{"term":"Loan Repayment","url":"https://dealroom.so/glossary/loan-repayment"},{"term":"Principal and interest","url":"https://dealroom.so/glossary/principal-and-interest"},{"term":"Set-Aside","url":"https://dealroom.so/glossary/set-aside"},{"term":"Standby Terms","url":"https://dealroom.so/glossary/standby-terms"},{"term":"Specific Lien","url":"https://dealroom.so/glossary/specific-lien"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-14","sba_rule_sources_checked_through":"2026-06-14"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-loans/basics/does-the-sba-set-all-the-specific-loan-terms-like-interest-rates-and-repayment","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}