Glossary · The loan itself
In short
The lender's markup on top of Prime — the only part of your rate that's negotiable. SBA caps how high it can go.
Your 7(a) rate is Prime plus this spread. SBA regulation caps the spread by loan size (3.0% on loans over $350K, more on smaller loans), but lenders can and do price under the cap on strong files. This is where shopping pays off: on a $1M loan, a quarter-point lower spread is roughly $125 a month. Ask two or three lenders for their spread in writing and let them compete.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Last checked 2026-06-16. 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 2026-06-16 · 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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