Glossary · The loan itself
Base Rate Index
In short
This is the specific benchmark interest rate, such as WSJ Prime or Term SOFR, that an SBA loan's variable interest rate is tied to. Your loan rate is this index plus a lender's spread.
What it means in a deal
When evaluating loan offers, compare not just the total interest rate but also the specific base rate index used. Understand its historical volatility and how frequently it adjusts, as this impacts your future debt service.
Official sources
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 Index
- Are SBA 7(a) loan interest rates typically fixed or variable, and what base rate index is commonly used?
- 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?
- What are the permitted alternative base rate options for variable-rate 7(a) loans beyond the Prime Rate?
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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