Glossary · The loan itself
WSJ Prime rate(prime rate)
In short
The benchmark most SBA 7(a) loans float on. Your rate is Prime plus a lender spread, and it moves when Prime moves.
What it means in a deal
Nearly every 7(a) acquisition loan is variable, priced as the Wall Street Journal Prime rate plus a spread the lender sets within an SBA cap. When the Fed cuts or hikes, Prime moves and your rate reprices (usually quarterly) — so the same loan can get cheaper or pricier over its life. When you compare term sheets, compare the spread over Prime, not the headline rate, because the Prime part is identical at every bank.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Last checked 2026-06-16. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about WSJ Prime rate
- 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 alternative base rates are available for variable-rate 7(a) loans besides the Wall Street Journal Prime rate?
- 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?
- What is the difference between Prime Rate and an SBA 7(a) loan 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.
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.