Glossary · The loan itself
Negotiated spread
In short
This is the interest rate percentage added by the lender to the base rate (like WSJ Prime or Term SOFR) to determine your final variable interest rate. It's a key component of your loan cost.
What it means in a deal
The spread is a critical factor in your loan's total cost over its term. While the base rate fluctuates, the negotiated spread usually remains fixed for the life of the loan. Try to negotiate a lower spread with your lender to reduce your 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
Common questions about Negotiated spread
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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