Glossary · The loan itself
In short
The highest interest rate a lender can charge on an SBA loan, determined by SBA regulations. Buyer cares because this protects you from excessive interest rates and helps you estimate your maximum loan cost.
The SBA sets a maximum interest rate lenders can charge, which is the Wall Street Journal Prime Rate (or Term SOFR) plus a maximum "Spread." This cap varies based on loan size and term. Always ensure your proposed interest rate is within these statutory limits, which your lender should clearly disclose.
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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