Glossary · The loan itself
In short
The highest interest rate an SBA lender is permitted to charge on a 7(a) loan, consisting of a base rate plus a spread. This caps your borrowing costs.
The SBA sets a maximum allowable interest rate for 7(a) loans, typically the Wall Street Journal Prime Rate (or Term SOFR) plus a fixed spread, depending on the loan size and term. Your lender cannot charge more than this cap. Always compare proposed rates to the current maximum to ensure you're not overpaying.
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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