Glossary · The loan itself
In short
The Prime Rate is a benchmark interest rate used by banks, often for variable-rate loans. For a buyer, this rate directly influences the interest payments on your SBA 7(a) loan, as your rate will be the Prime Rate plus a spread.
SBA 7(a) loans typically have variable interest rates tied to either the Prime Rate or Term SOFR. Your lender will quote your loan rate as Prime plus a fixed percentage, known as the spread. Keep an eye on the Wall Street Journal Prime Rate as it fluctuates, impacting your monthly debt service payments.
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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