Glossary · The loan itself
Additional spread
In short
This is an extra percentage added to the base interest rate (like WSJ Prime or Term SOFR) that a lender charges on an SBA loan. It directly impacts your monthly debt service, so a higher spread means higher payments.
What it means in a deal
The SBA sets maximum interest rates, which are a base rate plus a spread. Lenders may charge different spreads based on loan size, term, and perceived risk. Negotiate the spread with your lender as it affects your total cost of capital and repayment capacity.
Official sources
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.
Related terms
Common questions about Additional spread
- What is the difference between the base rate and the spread on an SBA 7(a) loan?
- What are the maximum allowable interest rates for variable rate 7(a) loans, including the permissible spread?
- What is the maximum interest rate spread a lender can add over the base rate for an SBA 7(a) loan?
- When is personal real estate typically required as additional collateral?
- What if the lender requests additional appraisals for assets late in the process?
- Can my personal residence be required as additional collateral for a larger SBA loan?
Defined by CapBench 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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