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Glossary · The loan itself

Fixed margin

In short

In a variable interest rate loan, this is the constant percentage added to a fluctuating base rate (like WSJ Prime or SOFR) to determine your total interest rate. The margin itself does not change.

What it means in a deal

Most SBA 7(a) loans have variable interest rates. Your interest rate will be the base rate plus a fixed margin, for example, WSJ Prime + 2.75%. Understand that while the margin is fixed, your actual interest payments will fluctuate with the base rate, impacting your monthly 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.

Common questions about Fixed margin

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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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