Glossary · The loan itself
In short
A loan where the interest rate can change over time, typically tied to an index like the WSJ Prime Rate or Term SOFR, plus a fixed spread. This means your monthly payments can fluctuate.
Most SBA 7(a) loans are variable-rate, adjusting quarterly. Understand the index your loan is tied to and the spread the lender charges. Model different interest rate scenarios in your financial projections to assess the impact on 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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