Glossary · The loan itself
In short
This refers to the base index rate your loan's variable interest rate is tied to, which is typically the WSJ Prime Rate or Term SOFR. Your lender may offer a choice between these.
Most SBA 7(a) loans have variable interest rates. The "peg rate" is the underlying index that fluctuates, to which your lender adds a "spread." Understand which peg rate you're choosing and how it has historically moved to anticipate your future interest payments, especially for long-term loans.
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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