Glossary · The loan itself
Base rate
In short
The benchmark interest rate used for variable-rate SBA loans, typically the WSJ Prime Rate or Term SOFR. Your loan's interest rate is this base rate plus a spread.
What it means in a deal
For a variable-rate 7(a) loan, your interest rate is tied to a base rate like the WSJ Prime Rate. This means your monthly interest payments will fluctuate as the base rate changes. Understand the trends and historical volatility of the chosen base rate, as it impacts your debt service.
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 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, besides Prime Rate?
- What are the currently approved base rate options for variable rate 7(a) loans?
- What are the current alternative base rate options 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.
See which SBA lenders would fund your deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to approve a 7(a) like yours and flag what trips up approval.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.