Glossary · The loan itself
Interest rate adjustment
In short
The change in your loan's interest rate over time if you have a variable rate loan. These adjustments are usually tied to an index like SOFR or Prime, impacting your monthly payment.
What it means in a deal
Most SBA 7(a) loans are variable rate, meaning your interest rate will adjust periodically based on changes to the underlying index (Fixed Spread SOFR or Prime Rate). Know your reset period and understand how interest rate movements will affect your debt service and cash flow projections. Factor potential increases into your financial planning.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Interest rate adjustment
- How are variable interest rate adjustments determined for an SBA 7(a) loan?
- How are the specific variable interest rate adjustments determined for an SBA 7(a) loan?
- What is the difference between a fixed interest rate and a variable interest rate on an SBA 7(a) loan?
- How is the interest rate cap determined for a variable rate 7(a) loan?
- How often can the interest rate on a variable-rate SBA 7(a) loan adjust?
- How often can the interest rate change on a variable-rate SBA 7(a) loan?
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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