The prime rate is an index published in the Wall Street Journal, based on the Federal Reserve’s monetary policies and cost of capital. Some business loans are tied to the prime rate. For example, you might see a loan rate quoted as “prime + 2.75%”. This simply means you take whatever happens to be the prime rate and tack on another 2.75% to get the rate the lender charges. The prime rate as of May 2020 is 3.25%. Historically that is very low. But the prime rate can change at any time. See historical prime rates.