Glossary · The loan itself
In short
The benchmark interest rate used for variable-rate SBA loans, typically the WSJ Prime Rate or Term SOFR. Your loan's interest rate is this base rate plus a spread.
For a variable-rate 7(a) loan, your interest rate is tied to a base rate like the WSJ Prime Rate. This means your monthly interest payments will fluctuate as the base rate changes. Understand the trends and historical volatility of the chosen base rate, as it impacts your debt service.
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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