What are the options for variable rate SBA loan with rates rising?

by a professional from Georgia Institute of Technology

Apr 05,2023

I have an SBA loan with variable rate. Since interest rates are rising fast, the monthly payment is increasing accordingly (adjusted quarterly). What are my options? how can I get it converted to a fixed rate so the monthly payment don't fluctuate? Are there any other options? open to suggestions

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professional from Georgia Institute of Technology

Thank you for the great comments. Very helpful. The business has healthy cashflow and is able to sustain the increase in payments but it is eroding the bottom line. It is a semi asset heavy business and owns its own RE. I may be able to get creative with some collateralized loans on the RE and equipment.

04/07/2023 | like reply | 0 likes

searcher

It is uncertain whether these suggestions would be relevant to an SBA loan; nevertheless, it may be beneficial to inquire about interest rate swaps and collars with your financial institution to determine whether they offer such financial products.

04/07/2023 | like reply | 0 likes

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