Glossary · The loan itself
In short
An alternative base rate that lenders can use for variable-rate SBA loans, instead of the WSJ Prime Rate or Term SOFR. It's set by the SBA and adjusts periodically, impacting your loan's interest rate.
For variable rate SBA 7(a) loans, your interest rate is calculated as a base rate (often WSJ Prime or Term SOFR) plus a spread. The SBA Optional Peg Rate is another allowable base rate. Understand which base rate your lender is using and how frequently it adjusts, as this directly affects your monthly principal and interest 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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