Glossary · The loan itself
In short
The maximum interest rate margin an SBA lender can charge above the prime rate or SOFR. It's regulated by the SBA to ensure fair pricing for borrowers.
The SBA sets maximum allowable spreads that lenders can charge over the base rate (like WSJ Prime or Term SOFR). For a 7(a) loan, this spread depends on the loan size and term. Ensure your lender's proposed interest rate does not exceed the SBA's maximum allowable spread, as this is a key compliance point for your loan terms.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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