Glossary · The loan itself
In short
The highest interest rate margin a lender can charge above the base rate (like WSJ Prime or SOFR) on an SBA loan. This limit is set by the SBA to protect borrowers.
The SBA regulates how much interest lenders can charge on 7(a) loans. The interest rate is variable, based on a base rate plus a 'spread.' While the maximum spread ensures lenders don't overcharge, you should still negotiate for the lowest possible rate within that limit.
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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