# Can an SBA lender hold my rate steady for the first few years and then let it float?

**Short answer:** Yes. SOP 50 10 8.1, Appendix 18 lets lenders delay the first rate adjustment and notes periods as long as 5 years. The loan is still a variable-rate loan, so the variable caps apply.

Canonical page: https://www.sbaexpress.loans/answers/sba-rate-held-steady-first-years/
Last checked: 2026-11-08

Lenders may delay the first rate adjustment on a variable-rate 7(a) loan. SOP 50 10 8.1, Appendix 18 (Frequency of Interest Rate Adjustment, about p. 397) says lenders have used periods as long as 5 years. The rate then begins to move as set out in the loan terms.

## Why this is not a fixed-rate loan

SBA's maximum fixed rate applies only if the rate holds for the entire term, with no reset (Appendix 18, Para. A.1). A rate that holds for 5 years and then floats does not meet that test. The variable cap for your loan size applies: Prime plus 3.0 to 6.5 percentage points, depending on loan size.

## What the Note must state

Appendix 18 requires the Note to list:

- The initial interest rate
- The date or timing of the first rate adjustment
- The frequency of rate adjustment
- The base rate and the spread

After the first adjustment, the rate can change no more often than monthly.

## What SBA does not say

The 5-year figure is an example, not a stated limit. Appendix 18 does not set a longest delay. Whether a lender offers this structure, and for how long, varies by lender.

## Sources

- [SOP 50 10 8.1, App. 18, Para. A, Frequency of Interest Rate Adjustment (about p. 397)](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, App. 18, Para. A.1, General Policy on Interest Rates (p. 395)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [13 CFR § 120.214(a), Frequency](https://www.ecfr.gov/current/title-13/section-120.214)