Glossary · The loan itself
In short
This is a loan feature allowing you to change the interest rate type, typically from variable to fixed, or vice versa, at specific points during the loan term. It offers flexibility against market changes.
Some SBA 7(a) loans, particularly those with variable rates tied to WSJ Prime or SOFR, might include a conversion right. This lets you lock in a fixed rate if you anticipate rising interest rates or switch to variable if rates are expected to fall. Discuss this option with your lender during loan negotiation.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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