Glossary · The loan itself
Statutory Cap
In short
A legal limit set by statute on certain aspects of an SBA loan, most commonly the maximum interest rate or loan amount. Buyer cares because it defines the boundaries of what's possible with SBA financing.
What it means in a deal
The SBA sets Statutory Caps on several loan features, including the maximum interest rate lenders can charge and the maximum total loan amount ($5 million for most 7(a) loans). Understand these caps to ensure your lender's terms are compliant and your financing needs fit within the program's limits.
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 Statutory Cap
- How is the interest rate cap determined for a variable rate 7(a) loan?
- How does an SBA 7(a) loan typically handle seasonal businesses for repayment capacity?
- Are there caps on the interest rates lenders can charge for SBA 7(a) loans?
- How does the SBA ensure that lenders adhere to specific interest rate caps on 7(a) loans?
- For a seller note on full standby, is it permissible for the accrued interest to capitalize or compound during the SBA 7(a) loan term?
- Are there specific limits on the amount of working capital that can be included in a 7(a) Working Capital Pilot Program 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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