Glossary · The loan itself
In short
Term SOFR is a benchmark interest rate used for variable-rate SBA loans. It reflects the cost of borrowing cash overnight, providing a forward-looking rate for your loan's interest adjustments.
For an SBA 7(a) loan, your variable interest rate will likely be tied to Term SOFR plus a lender's spread. This means your monthly payments can change as Term SOFR fluctuates. Understand how often your rate resets, as this directly impacts your cash flow after debt service.
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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