Glossary · The loan itself
Annual Percentage Rate(APR)
In short
The total cost of borrowing money over a year, expressed as a percentage. It includes the interest rate plus certain other fees, giving you a clearer picture of the true cost.
What it means in a deal
For an SBA loan, the APR reflects the stated interest rate plus the SBA guaranty fee and any lender fees that are factored into the loan cost. Compare APRs from different lenders to understand the actual expense of your financing, not just the advertised interest rate.
Related terms
Common questions about Annual Percentage Rate
- How does the ongoing servicing fee affect the annual percentage rate (APR) calculation for a 7(a) loan?
- What alternative base rates are available for variable-rate 7(a) loans besides the Wall Street Journal Prime rate?
- What is the 'Prime Rate' when talking about SBA 7(a) loan rates?
- What specific alternative base rates are permissible for variable rate 7(a) loans?
- What is the Wall Street Journal Prime Rate's role in SBA 7(a) loan interest rates?
- What are the maximum allowable interest rates for variable rate 7(a) loans, including the permissible spread?
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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