Start with the proposed loan terms
Identify whether the loan is fixed or floating, which benchmark it uses and when the rate is determined. The definition in the term sheet matters more than a headline market rate.
Treasury yields
Treasury yields are a reference for some fixed-rate loans. Match the maturity and rate-setting terms to the proposed financing rather than applying the ten-year yield to every loan.
SOFR
Overnight SOFR, SOFR averages and Term SOFR are different measures. Confirm the exact index, reset convention, spread and floor with the lender.
What the benchmark does not tell you
A benchmark does not establish a lender’s spread, fees, willingness to lend or final proceeds. Those come from the financing proposal and underwriting.