Glossary · The loan itself
Margin
In short
This is the fixed percentage added to the variable index rate (like WSJ Prime or Term SOFR) to determine your loan's interest rate. It's the lender's profit component.
What it means in a deal
Your SBA 7(a) loan will have a variable interest rate, typically calculated as Index + Margin. The margin is set at closing and remains constant. Focus on negotiating the lowest possible margin within SBA limits, as it directly impacts your ongoing interest payments.
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
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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