Glossary · The loan itself
In short
The maximum interest rate that can be charged on a variable-rate SBA loan over its lifetime. This protects you from unlimited increases in your monthly payments if market interest rates spike.
While your SBA 7(a) loan's variable rate will fluctuate, the SBA mandates a lifetime interest rate cap. This cap is tied to the initial base rate plus a maximum spread, ensuring your payments won't exceed a specific ceiling. Always confirm the exact cap with your lender to understand your worst-case debt service scenario.
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.
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.
Free · No documents · Usually same-day