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 SOFR, plus a fixed spread. This impacts your monthly payment fluctuations.
Most SBA 7(a) loans are variable rate. Your monthly payments will adjust as the underlying index changes. Understand the current rate environment and stress-test your cash flow projections against potential rate increases to ensure the business can still service the debt.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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