Glossary · The loan itself
Maximum Interest Rate
In short
This is the highest interest rate an SBA 7(a) loan can charge. It's set by the SBA and directly impacts your monthly loan payments and overall cost of borrowing.
What it means in a deal
The SBA sets the maximum allowable interest rate based on the WSJ Prime Rate or Term SOFR plus a lender-specific spread, which varies by loan size and term. For variable rate loans, this maximum acts as a cap, protecting you from extreme rate increases. Ensure your loan agreement clearly states the maximum.
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 Maximum Interest Rate
- What are the maximum allowable interest rates for variable rate 7(a) loans, including the permissible spread?
- How do lenders determine the maximum allowable interest rate for a variable rate 7(a) loan?
- What is the specific maximum interest rate a lender can charge on a variable rate 7(a) loan?
- What is the maximum interest rate spread a lender can add over the base rate for an SBA 7(a) loan?
- What is the maximum interest rate I can be charged on an SBA 7(a) loan?
- Is there a maximum interest rate a lender can charge for an 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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