Glossary · The loan itself
Fixed Rate Treasury
In short
Refers to the interest rate on an SBA loan being tied to a specific Treasury index, with a fixed spread added by the lender. This gives you a consistent interest rate for the life of the loan.
What it means in a deal
The SBA permits fixed rates for 7(a) loans, but they are less common for acquisitions. If offered, the rate is often based on a Treasury index plus a fixed spread. This provides predictability in your monthly payments, shielding you from rising interest rates. Evaluate if the fixed rate premium is worth it.
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 Fixed Rate Treasury
- Are fixed-rate or variable-rate options more common for SBA 7(a) loans?
- What is the difference between a fixed interest rate and a variable interest rate on an SBA 7(a) loan?
- What is the primary difference between a variable rate and a fixed rate SBA 7(a) loan for a borrower?
- What is the main difference between a 'fixed' and 'variable' interest rate for a loan?
- Can my SBA 7(a) loan have a fixed interest rate instead of a variable one?
- Can I choose between a fixed or variable interest rate for my SBA 7(a) loan?
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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