Glossary · Reading the business
Benchmark
In short
A benchmark is a standard or point of reference against which something can be measured or compared. In business, it helps assess performance relative to industry peers.
What it means in a deal
When evaluating a business, you'll compare its financial performance (like revenue growth or profit margins) to industry benchmarks to see if it's performing well or poorly. For SBA loan interest rates, the benchmark is the base rate (like WSJ Prime or Term SOFR) that the lender's spread is added to.
Related terms
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.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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.