Glossary · The loan itself
In short
This is the maximum interest rate a lender can charge on an SBA 7(a) loan, set by the SBA as a margin above a base rate. Buyers care because it directly impacts your monthly loan payments and total cost of borrowing.
The SBA defines maximum spreads (e.g., 2.25% to 3.75% over Prime/SOFR, depending on loan size and term). Lenders will price your loan within this range. Negotiate for the lowest spread possible, as even small differences add up over a long amortization period.
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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