{"ok":true,"canonical_url":"https://www.capbench.com/glossary/wsj-prime-rate","api_url":"https://www.capbench.com/api/public/glossary/wsj-prime-rate","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-17","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","CapBench lender and franchise enrichment"],"term":{"slug":"wsj-prime-rate","term":"WSJ Prime rate","aka":"prime rate","group":"The loan itself","definition":"The benchmark most SBA 7(a) loans float on. Your rate is Prime plus a lender spread, and it moves when Prime moves.","what_it_means":"Nearly every 7(a) acquisition loan is variable, priced as the Wall Street Journal Prime rate plus a spread the lender sets within an SBA cap. When the Fed cuts or hikes, Prime moves and your rate reprices (usually quarterly) — so the same loan can get cheaper or pricier over its life. When you compare term sheets, compare the spread over Prime, not the headline rate, because the Prime part is identical at every bank.","url":"https://www.capbench.com/glossary/wsj-prime-rate","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://www.capbench.com/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"spread-over-prime","term":"Spread over Prime","url":"https://www.capbench.com/glossary/spread-over-prime"},{"slug":"7a-loan","term":"7(a) loan","url":"https://www.capbench.com/glossary/7a-loan"},{"slug":"term-maturity","term":"Term / maturity","url":"https://www.capbench.com/glossary/term-maturity"}],"related_questions":[{"question":"How does a lender determine the maximum allowable interest rate for a variable-rate 7(a) loan tied to the WSJ Prime?","url":"https://www.capbench.com/for-lenders/questions/how-does-a-lender-determine-the-maximum-allowable-interest-rate-for-a-variable-rate-7-a-lo"},{"question":"What is the 'Prime Rate' when talking about SBA 7(a) loan rates?","url":"https://www.capbench.com/sba-7a/questions/what-is-the-prime-rate-when-talking-about-sba-7-a-loan-rates"},{"question":"What alternative base rates are available for variable-rate 7(a) loans besides the Wall Street Journal Prime rate?","url":"https://www.capbench.com/for-lenders/questions/what-alternative-base-rates-are-available-for-variable-rate-7-a-loans-besides-the-wall-str"},{"question":"What is the Wall Street Journal Prime Rate's role in SBA 7(a) loan interest rates?","url":"https://www.capbench.com/sba-7a/questions/what-is-the-wall-street-journal-prime-rate-s-role-in-sba-7-a-loan-interest-rates"},{"question":"What are the current alternative base rate options for variable rate 7(a) loans, besides Prime Rate?","url":"https://www.capbench.com/for-lenders/questions/what-are-the-current-alternative-base-rate-options-for-variable-rate-7-a-loans-besides-pri"},{"question":"What is the difference between Prime Rate and an SBA 7(a) loan rate?","url":"https://www.capbench.com/sba-7a/questions/what-is-the-difference-between-prime-rate-and-an-sba-7-a-loan-rate"}],"related_tool":{"label":"SBA 7(a) payment calculator","url":"https://www.capbench.com/sba-7a/calculator"}},"caveats":["Definitions represent CapBench's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"CapBench Glossary — WSJ Prime rate","url":"https://www.capbench.com/glossary/wsj-prime-rate","source_type":"CapBench Data"}}