Glossary · The loan itself
Alternative base rate
In short
An interest rate benchmark used by lenders that is not the standard Wall Street Journal Prime Rate or Term SOFR. It's less common for SBA 7(a) loans.
What it means in a deal
While most SBA 7(a) loans are tied to WSJ Prime or Term SOFR, some lenders might offer an alternative base rate. Always compare the spread and the historical volatility of any alternative rate to ensure you understand the true cost and risk of your variable interest rate loan.
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 Alternative base rate
- What specific alternative base rates are permissible for variable rate 7(a) loans?
- What alternative base rates are available for variable-rate 7(a) loans besides the Wall Street Journal Prime rate?
- What alternative base rate options are available for variable rate 7(a) loans?
- What are the current alternative base rate options for variable rate 7(a) loans?
- What are the current alternative base rate options for variable rate 7(a) loans, besides Prime Rate?
- What are the current alternative base rate options available for variable rate 7(a) loans?
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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