Glossary · The loan itself
SBA Peg Rate
In short
The SBA Peg Rate is an alternative base rate lenders can use for variable interest rates on SBA 7(a) loans. It's set by the SBA and changes quarterly.
What it means in a deal
While most lenders use WSJ Prime or Term SOFR, some may offer the SBA Peg Rate as the index for your variable interest loan. Understand how often it adjusts and compare its historical volatility to other base rates to gauge potential payment fluctuations. It's less common but an option.
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 SBA Peg Rate
- What is the difference between Prime Rate and the SBA optional peg rate for 7(a) loans?
- What alternative base rates are available for variable-rate 7(a) loans besides the Wall Street Journal Prime rate?
- What is the 'Prime Rate' when talking about SBA 7(a) loan rates?
- What specific alternative base rates are permissible for variable rate 7(a) loans?
- What is the Wall Street Journal Prime Rate's role in SBA 7(a) loan interest rates?
- Are SBA 7(a) loan interest rates typically fixed or variable, and what base rate index is commonly used?
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.