Glossary · The loan itself
Maximum spread
In short
This is the highest interest rate a lender can charge you on an SBA 7(a) loan, calculated as a set percentage added to a base rate like WSJ Prime. It protects you from excessive interest costs.
What it means in a deal
The SBA sets maximum spreads to ensure fair lending. Your actual spread depends on the loan size and lender. Always compare rates, but know there's a ceiling.
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 spread
- 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?
- What is the difference between the base rate and the spread on an SBA 7(a) loan?
- What factors determine the maximum loan amount my business can qualify for?
- Is there a maximum dollar amount for an SBA 7(a) loan?
- Is there a maximum dollar limit 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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