Holly, yes, you'll have a loop of yarn there, but not a big one. Two rows isn't a big distance to carry the yarn, and with it being regular and along the side edge, it looks neat.
If it were in a garment like a sweater, where you carry the yarn along the inside, where it's not seen, the rule of thumb is that you can carry the yarn for a distance of 5 stitches wide (which I'd say is 7 rows high) before it becomes unruly.
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