I currently have a 1.2 million SBA 7a loan with variable interest rate, currently I am paying 6% after this recent rate hike. If fed raises interest rate by another 4% in the next 2 years, I am looking at paying 10% of interest rate, and this is so high! and that means $4000 of more additional interest payment per month and that will be unsustainable for our small business. I wonder if there is any way for me to get out of it before its too late?
You can always look for refinancing, but it will not be very cheap either - every bank knows as well as you that rate hikes are potentially coming.
What you experience is the core risk of variable mortgages - the reason they are cheap compared to fixed percentages is that you take the full risk of interest rate increases.
Basically, by taking a variable rate, you gambled on long term low interest, and now you lost.