Glossary · The loan itself
Fixed or Variable Spread
In short
This refers to whether the interest rate markup above a benchmark (like Prime) stays constant or can change over the loan's term. It directly impacts your monthly payments.
What it means in a deal
SBA 7(a) loans have a variable interest rate tied to a benchmark like WSJ Prime or Term SOFR, plus a "spread" or margin. This spread can either be fixed (e.g., Prime + 2.75%, always) or variable (e.g., changes after a certain period). Most 7(a) loans have a fixed spread, meaning only the benchmark rate changes.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Fixed or Variable Spread
- Are SBA 7(a) loan interest rates fixed or variable, or both?
- Are SBA 7(a) loan interest rates fixed or variable?
- Are SBA 7(a) loan interest rates typically fixed or variable?
- Are interest rates on SBA 7(a) loans fixed or variable?
- Are SBA 7(a) loan interest rates usually fixed or variable over time?
- Are SBA 7(a) loan interest rates fixed, variable, or can I choose?
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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