Glossary · The loan itself
Fixed Spread
In short
A fixed spread is the unchanging margin added to a variable base rate to determine your loan's interest rate. While the total rate fluctuates, the spread itself remains constant.
What it means in a deal
For SBA 7(a) loans with variable rates, your interest rate is usually a base rate (like WSJ Prime or Term SOFR) plus a fixed spread. This means your interest rate changes with the base rate, but the "extra" percentage charged by the bank stays the same for the life of the loan. Negotiate the spread upfront.
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 Spread
- What is the difference between the base rate and the spread on an SBA 7(a) loan?
- What are the maximum allowable interest rates for variable rate 7(a) loans, including the permissible spread?
- What is the maximum interest rate spread a lender can add over the base rate for an SBA 7(a) loan?
- 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?
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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