The next Federal Open Market Committee (FOMC) meeting is in 14 days and the Fed is expected to increase the Target Rate to 5.5%, which would increase the Prime Interest Rate to 8.5%. A lot of Commercial Real Estate (CRE) and Business Loans are tied to Prime. SBA adjustable 7(a) loans are tied to Prime, and a lot of people are wondering if they should lock into a fixed rate loan or ride the adjustable loan until the rates decrease. If you feel like rates will increase further, locking in might be a good option. However, if you feel rates will come down in the near future, taking an adjustable loan with a limited or no Prepayment Penalty (PPP) could be a better strategy. If Prime decreases, borrowers could benefit from a reduction in their interest rate, resulting in lower monthly payments. When you feel rates are low and stabilized then lock in. If you lock into a high interest rate with a long-term PPP then you’re guaranteed to have that high rate until you are out of your PPP. Most CRE loans have PPP. Do some research and try to figure out where the rates will go and then make the best decision for you and your business. A few questions to think about. Will rates drop when inflation is lower? Will rates drop in an Election Year?