Glossary · The loan itself
Wall Street Journal Prime Rate(WSJ Prime)
In short
This is a widely published interest rate that banks use as a base for many variable-rate loans. For SBA 7(a) loans, it's often the benchmark to which a "spread" is added to calculate your interest rate.
What it means in a deal
Many SBA 7(a) loans are variable-rate, meaning your interest payments will fluctuate with WSJ Prime. Understand how changes in this rate will impact your monthly debt service. Monitor its trends, as even small shifts can affect your cash flow.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Wall Street Journal Prime Rate
- What is the Wall Street Journal Prime Rate's role in SBA 7(a) loan interest rates?
- What alternative base rates are available for variable-rate 7(a) loans besides the Wall Street Journal Prime rate?
- What are the acceptable alternative base rate options for variable-rate 7(a) loans, besides the Wall Street Journal Prime rate?
- What are the permissible alternative base rate options for variable-rate 7(a) loans besides the Wall Street Journal Prime?
- When is the use of the Wall Street Journal Prime Rate as the base rate mandatory for a variable rate 7(a) loan, if ever?
- What is the 'Prime Rate' when talking about SBA 7(a) loan rates?
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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