Free Business Tool

SBA Loan Calculator

Run the numbers on SBA 7(a), 504, and microloan programs before you apply.

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What Is the SBA Loan Calculator?

SBA loans get you lower rates and longer terms because the government guarantees part of the lender's risk. This calculator shows your monthly payment, the upfront SBA guarantee fee, total cost, and what you're really paying after fees. SBA 7(a) -- the most common program -- goes up to $5 million for working capital, equipment, real estate, or refinancing existing debt, with terms as long as 25 years. SBA 504 is for real estate and heavy equipment. Microloans go up to $50,000 for startups and small shops. One thing people overlook: the guarantee fee. It's a one-time upfront charge of 0.25% to 3.75% of the guaranteed portion, usually rolled into the loan. That bumps your effective rate above the quoted number.

How to Use This Calculator

Enter the Loan Amount

How much are you looking to borrow? SBA 7(a) maxes out at $5 million. Microloans cap at $50,000.

Set the Interest Rate

SBA 7(a) variable rates run Prime + 2.25% to 2.75%. Some SBA 504 loans offer fixed rates. Use what your lender quoted, or estimate based on current Prime.

Choose the Loan Term

Working capital: 7-10 years. Equipment: matches the asset's useful life, up to 10-25 years. Real estate: up to 25 years.

Select the Guarantee Level

85% guarantee for loans up to $150K, 75% for larger loans. SBA Express gives you faster approval but only a 50% guarantee.

Review Payment and Fees

Look at the monthly payment and the guarantee fee together. The effective rate gives you the real cost with that upfront fee spread over the loan's life.

Key Concepts

SBA Guarantee

The SBA doesn't lend you money. It backs a portion of your loan from a participating bank, which lowers the bank's risk. You default? The SBA covers the guaranteed share of the bank's loss.

Guarantee Fee Structure

The fee scales with loan size: 0% under $500K with short maturity, 2% for $150K-$700K, 3% for $700K-$1M, and 3.5%+ above $1M. Plus a 0.55% annual servicing fee on top.

Processing Timeline

Standard 7(a) loans take 30-90 days from application to cash in hand. SBA Express can move in 7-14 days, but you pay higher rates for that speed.

Personal Guarantee

Every SBA loan requires a personal guarantee from anyone owning 20%+ of the business. That means your personal assets are on the line if the business can't pay.

Eligible Uses

You can use 7(a) money for working capital, equipment, inventory, buying real estate, acquiring another business, or refinancing existing debt that qualifies.

Expert Insights

SBA loans are the best deal in small business financing -- nothing beats the rate and term. But the application is a paperwork marathon. Have 3 years of tax returns, current financials, a business plan, and personal financial statements ready before you start.

People forget about the guarantee fee when comparing SBA to conventional loans. On a $500K 10-year loan, that fee can top $15,000. It's still usually worth it, but factor it into your total cost.

Need under $500K and can't wait 90 days? SBA Express splits the difference -- faster processing than standard 7(a) with rates that still crush online lenders and MCAs.

Frequently Asked Questions

Most want 680+ personal credit, though some will work with 650+. They also look at business credit history, time in business (usually 2+ years), and annual revenue ($100K+ for most lenders).

Yes, and it's one of the smartest moves you can make. SBA 7(a) can refinance MCAs and other business debt as long as the refinance clearly helps -- lower rate, lower payment, better cash flow. The lender has to document why.

7(a) is the all-purpose option -- working capital, equipment, real estate, refinancing. 504 is strictly for buying fixed assets like real estate and heavy equipment. The 504 rates are usually lower for those purchases, but you can't use the money for working capital.

7(a) loans are typically variable, tied to WSJ Prime plus 2.25-2.75%. Some 504 loans offer fixed rates through a Certified Development Company. Ask your lender what's available -- the answer can change depending on the program and your situation.

This calculator provides estimates for educational purposes only. Actual results depend on your specific business financials, lender terms, and market conditions. Consult a qualified financial advisor before making major business financing decisions.