Glossary · Reading the business
In short
Interest rate risk is the potential for changes in market interest rates to negatively affect your loan payments. This risk primarily applies to variable rate loans.
If your SBA 7(a) loan has a variable interest rate, your monthly payment will fluctuate with market rates. Higher rates mean higher payments, which can reduce your cash flow after debt service and impact the business's profitability. Assess the business's ability to absorb potential rate increases when choosing your loan type.
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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Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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