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Glossary · The loan itself

Adjustment Frequency

In short

This specifies how often the interest rate on your variable rate SBA loan can change. Understanding it helps you anticipate potential fluctuations in your monthly loan payments.

What it means in a deal

SBA 7(a) loans are typically variable rate, tied to a base rate like WSJ Prime or Term SOFR, plus a spread. The adjustment frequency dictates if your rate changes monthly, quarterly, or semi-annually. While a lower rate is good, be prepared for payment changes if the base rate increases, impacting your cash flow after debt service.

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.

Common questions about Adjustment Frequency

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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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