Glossary · The loan itself
In short
The highest percentage a lender can add to the base rate (like Prime or SOFR) when calculating your SBA loan's interest rate. This ensures lenders don't overcharge borrowers beyond SBA limits.
The SBA sets caps on the spread lenders can charge, based on the loan amount and maturity. For example, a loan over $50,000 with a term of 7 years or more has a maximum spread. Negotiate with your lender to get a spread below the maximum, as this directly impacts your ongoing interest costs and 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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