# 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.

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Last checked: 2026-11-08

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.

## Sources

- [13 CFR § 120.214(b), Range of fluctuation](https://www.ecfr.gov/current/title-13/section-120.214)
- [SOP 50 10 8.1, App. 18, Para. A, Frequency of Interest Rate Adjustment (about pp. 397-398)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. A, Ch. 4, Para. C.2.b, Extraordinary Servicing Fee (about p. 68)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)