Glossary · The loan itself
Interest Rate Spread
In short
This is the fixed percentage added to a fluctuating base interest rate (like WSJ Prime or Term SOFR) to determine your actual loan interest rate. It represents the lender's profit and risk assessment.
What it means in a deal
SBA 7(a) loan interest rates are variable, calculated as a base rate plus a spread. While the base rate changes, your spread remains fixed for the loan's life. Lenders have caps on how high they can set this spread. Understand your specific spread, as it directly impacts your monthly interest payments.
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 Interest Rate Spread
- What is the maximum interest rate spread a lender can add over the base rate for 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 difference between the base rate and the spread on an SBA 7(a) loan?
- What is the difference between a fixed interest rate and a variable interest rate on an SBA 7(a) loan?
- How is the interest rate cap determined for a variable rate 7(a) loan?
- How often can the interest rate on a variable-rate SBA 7(a) loan adjust?
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.
See which SBA lenders would fund your deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to approve a 7(a) like yours and flag what trips up approval.
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.