Glossary · The loan itself
In short
This is a benchmark interest rate based on the cost of borrowing cash overnight, used for variable rate loans. It has replaced LIBOR as a common index for SBA loan interest rates.
Many SBA 7(a) loans use Term SOFR as the base rate for their variable interest rates, to which a lender's spread is added. Understand how Term SOFR fluctuations will impact your monthly loan payments. Ensure your financial projections account for potential increases in this variable rate.
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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