Glossary · The loan itself
In short
An interest rate tied to the Secured Overnight Financing Rate (SOFR), which replaced LIBOR as a key benchmark for variable-rate loans. Most new variable-rate SBA loans use a SOFR-based index.
Your variable-rate SBA 7(a) loan will likely use a SOFR-based index, such as Term SOFR, plus a spread. This rate adjusts periodically, so your monthly payment can change. Understand the specific SOFR index and spread your lender uses, and how often it resets.
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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