Glossary · The loan itself
In short
Refers to the interest rate on an SBA loan being tied to a specific Treasury index, with a fixed spread added by the lender. This gives you a consistent interest rate for the life of the loan.
The SBA permits fixed rates for 7(a) loans, but they are less common for acquisitions. If offered, the rate is often based on a Treasury index plus a fixed spread. This provides predictability in your monthly payments, shielding you from rising interest rates. Evaluate if the fixed rate premium is worth it.
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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