Glossary · The loan itself
In short
SOFR is a new benchmark interest rate used for many variable-rate loans, replacing LIBOR. Like WSJ Prime, a "spread" is added to SOFR to determine your actual loan interest rate.
For SBA 7(a) loans, lenders are increasingly using Term SOFR as the base rate for variable interest loans. Be aware if your loan is tied to SOFR, as your payments will adjust quarterly or monthly based on its fluctuations. Factor potential rate increases into your cash flow projections.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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