Glossary · The loan itself
In short
This is the actual annual interest rate paid on a loan or investment, taking into account compounding and all fees. It gives you the true cost of borrowing.
Your SBA 7(a) loan will have a stated interest rate, but the effective rate includes the SBA guaranty fee, ongoing servicing fees, and any lender closing costs. Compare the effective interest rate across different lenders to understand the total cost of each loan option.
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.
See which SBA lenders would fund your deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to approve a 7(a) like yours and flag what trips up approval.
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