How does a change in the Prime rate affect my SBA loan payment?
Short answer
A 1 percentage point move in Prime changes annual interest by about $1,000 per $100,000 of balance. Your payment changes at the next adjustment date, and lenders typically re-amortize then, per SOP 50 10 8.1, Appendix 18.
On a variable-rate loan, your rate is the base rate plus a spread that stays the same. The rate moves by the same amount as the base rate (13 CFR § 120.214(b)). Prime is 7.00% as of Nov 10, 2026.
What a 1-point move does
Annual interest changes by about $1,000 for each $100,000 of balance. The monthly payment changes by less, because each payment also repays principal. At the start of a fully amortizing loan, each $100,000 moves by roughly:
- 10-year term: $50 to $60 a month
- 25-year term: $65 to $77 a month
The exact amount depends on your starting rate and remaining term. These are arithmetic estimates, and your lender's schedule controls.
When the change reaches you
- It happens on your Note's adjustment date. SBA says many lenders use the calendar quarter (SOP 50 10 8.1, Appendix 18).
- Lenders typically re-amortize at each adjustment so the loan pays off by maturity.
- A lender may not charge a fee for resetting your installment to reach full payoff (Section A, Chapter 4, Para. C.2.b).
When it does not
A fixed rate does not move. A rate held for its first years does not move until the first adjustment. A ceiling or floor in your Note can stop the move at that level.
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