Glossary · The loan itself
In short
The cost of borrowing money, expressed as a percentage of the principal. This directly impacts your monthly loan payments and the total cost of your 7(a) loan.
7(a) loans typically have variable interest rates, usually pegged to the WSJ Prime Rate or Term SOFR plus a spread. Understand how often it adjusts and what the maximum spread is allowed by the SBA. A higher rate means higher debt service, impacting your cash flow after 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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