Glossary · The loan itself
Variable Spread
In short
This is the fixed percentage added to a fluctuating base rate (like WSJ Prime or Term SOFR) to determine your loan's variable interest rate. Your actual interest rate will change over time.
What it means in a deal
Most SBA 7(a) loans have a Variable Interest Rate. The Variable Spread remains constant, but the underlying base rate moves, meaning your monthly principal and interest payments can fluctuate. Understand the maximum possible interest rate and how changes could impact your Cash Flow After Debt Service.
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 Variable Spread
- What are the maximum allowable interest rates for variable rate 7(a) loans, including the permissible spread?
- What is the difference between the base rate and the spread on an SBA 7(a) loan?
- What is the maximum interest rate spread a lender can add over the base rate for an SBA 7(a) loan?
- Are SBA 7(a) loan interest rates fixed or variable?
- Are SBA 7(a) loan interest rates typically fixed or variable?
- Are interest rates on SBA 7(a) loans fixed or variable?
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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