Glossary · The loan itself
WSJ Prime
In short
The base interest rate published by the Wall Street Journal. Your rate is Prime plus a spread.
What it means in a deal
WSJ Prime is the floating benchmark that anchors 7(a) loan rates — it moves with the federal funds rate and is reset whenever the Fed acts. Lenders quote your rate as 'Prime + X%' where X is the spread they're adding. If Prime is 7.5% and your spread is 2.75%, your rate is 10.25%. Track Prime at the time you're modeling a deal, and remember it can move between letter of intent and closing.
Related terms
Common questions about WSJ Prime
- How does a lender determine the maximum allowable interest rate for a variable-rate 7(a) loan tied to the WSJ Prime?
- What is the 'Prime Rate' when talking about SBA 7(a) loan rates?
- What is the difference between Prime Rate and an SBA 7(a) loan rate?
- What is the difference between Prime Rate and the SBA optional peg rate for 7(a) loans?
- What is the Wall Street Journal Prime Rate's role in SBA 7(a) loan interest rates?
- What are the current alternative base rate options for variable rate 7(a) loans, besides Prime Rate?
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 2026-06-16 · 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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