SBA rules · SOP 50 10 8.1

How often can the rate on an SBA loan change?

Under general 7(a) rules, interest rate adjustments on a variable rate loan may occur no more frequently than monthly, though lenders under SBA Express and Export Express may follow their own established change intervals.

Quoted from SBA SOP 50 10 8.1Every quote checked word for word

In detail

General 7(a) frequency limit: The lender must specify the adjustment frequency in the Note, and subsequent adjustments may occur no more frequently than monthly.
Initial adjustment period: The first adjustment may occur on the first calendar day of the month following initial disbursement, but lenders are permitted to delay the initial adjustment period (for example, freezing the initial rate for up to 5 years) before the rate begins fluctuating.
Timing and effective date: All subsequent adjustments set the rate on the first calendar day of the adjustment period using the base rate or Alternative Base Rate in effect on the first business day of that period.
SBA Express and Export Express exception: Lenders processing variable rate loans under SBA Express or Export Express are not bound by the standard frequency rules and may use the established change intervals they use for their similarly-sized, non-SBA guaranteed commercial loans.

The source

What the SOP says

“Subsequent adjustments may occur no more frequently than monthly.

SOP 50 10 8.1, Appendix 18: 7(a) Interest Rate Requirements > Post-Disbursement Changes (lines 5498-5506)✓ Verified

“The first adjustment may occur on the first calendar day of the month following initial disbursement, using the base rate or Alternative Base Rate in effect on the first business day of the month. Lenders may delay the initial adjustment period.

SOP 50 10 8.1, Appendix 18: 7(a) Interest Rate Requirements > Post-Disbursement Changes (lines 5498-5506)✓ Verified

“It may use the same base rate of interest it uses on its similarly-sized non-SBA guaranteed commercial loans, as well as its established change intervals, payment accruals, etc.

SOP 50 10 8.1, Appendix 18: 7(a) Interest Rate Requirements > Default Interest Rates (lines 5553-5554)✓ Verified

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