SBA Loan Payments Calculator


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Are you a small business owner looking to secure financing for your business or acquisition candidate? Navigating the world of SBA loans can be daunting, but with the help of our SBA Loan Calculator, you can estimate your loan payments with ease and confidence. By understanding the costs and benefits of different loan options, you’ll be better equipped to make informed decisions about your business’s financial future. Ready to take control of your business finances? Let’s dive into the world of SBA loans and SBA loan payments

Short Summary

  • Use the SBA loan calculator to compare loan options and make informed decisions.
  • Consider factors such as loan amount, interest rate, and term when selecting a loan.

Using the SBA Loan Calculator: A Step-by-Step Guide

The SBA loan calculator is a powerful tool designed to help you estimate the repayment period and fixed interest rate of a fixed-rate loan, such as the popular SBA 7(a) loan. By providing a range of dollar figures you may be able to borrow, the calculator empowers you to make informed decisions about the best loan option for your business. Comparing various SBA and non-SBA loan options has never been more straightforward, as the loan amount is the primary factor to consider when using the calculator.

Before we dive into the step-by-step guide on how to use the SBA loan calculator, it’s essential to understand the factors affecting SBA loan costs, including the loan amount, interest rate, loan term, and associated fees.

Inputting SBA Loan Information

To make the most of the SBA loan calculator, it’s crucial to input accurate information about your loan, such as the loan amount, interest rate, and repayment term. These inputs play a significant role in determining the loan payments and overall cost of the loan. Our loan calculator below includes current standard SBA loan rates and terms, but your rates and terms may differ.

Here are a few key points to consider with SBA 7(a) loans:

SBA Loan Amount – Our SBA lenders start at $50,000. The maximum SBA loan is $5,000,000.

Down Payment – The SBA requires the borrower to put 10% down in a transaction. Some SBA lenders will require 15% to 20% depending on a variety of factors, the most important of which is the owner(s) industry experience. A borrower with an existing business may be able to use equity for the business’s balance sheet in order to reduce required down payment, but this does not apply to business acquisitions (since the borrower does not yet own the business).

SBA Interest Rates – SBA interest rates are set by SBA banks, but SBA does set a maximum interest rate. The interest rate is a fixed % plus the prime rate. The Federal reserve determines the prime rate. Most SBA lenders charge between 50 and 100 basis points (100 basis points is 1%) below the maximum SBA loan interest rates, which fluctuate with the Federal Reserve’s prime rate:

Loan AmountFixed+PrimeSBA Max Interest
$50,000 - $5,000,0003.0%8.5%11.5%
$25,000 - $50,0004.0%8.5%12.5%

Guaranty Fee – In addition to interest, the SBA charges a guarantee fee. Guaranty fee: This is a one-time fee that is charged based on the amount of the loan that is guaranteed by the SBA. The fee ranges from 0.25% to 3.75% of the guaranteed portion of the loan, depending on the loan amount and term. Ask your SBA lender what to expect regarding the guarantee fee for your SBA loan. Note that the SBA loan calculator above does not include the SBA guaranty fee in its calculation.

SBA Loan Term – SBA 7(a) loans are either 10 years or 25 years if real estate is included. If the loan includes just a portion for real estate, that portion would be for 25 years and the remaining portion of the loan would be amortized over 10 years. If a loan has both real estate and non-real estate components (e.g., a business acquisition that includes a warehouse), the SBA lender will come up with a blended term.

SBA Loan Payment (aka Debt Service) – Bankers want to make sure there is adequate cash flow to cover the debt service (interest and principal payments), so the monthly cash flow (revenues less all expenses including owners’ salaries) from the business will need to be 10% up to 25% higher than the debt service. For example, if your SBA loan payments are $10,000 per month, the bank will want to see historical monthly cash flow of $11,000 – $12,500 per month. SBA bankers will not lend to a borrower if they believe that every available dollar of cash will be need to cover the loan payments. Bankers want to make sure you have some margin of error in case cash flows dip slightly from historical levels.

Limitations of the Calculator

Though the SBA Loan Calculator is a valuable tool, it’s essential to be aware of its limitations. For instance, the calculator does not consider specific business loan fees, such as the SBA guarantee fee. Also, since most SBA loans are variable versus fixed rate loans, your SBA loan payment may fluctuate over time given interest rate fluctuations, which are inevitable.

Types of SBA Loans and Their Features

Now that we’ve covered the factors affecting SBA loan costs, let’s explore the different types of SBA loans available to small businesses. Each loan type comes with its own unique features and benefits, so understanding the differences between them will help you determine which program best suits your business’s needs.

In this section, we’ll discuss SBA 7(a) loans, SBA Express loans, and SBA 504 loans, along with their respective features and purposes.

Standard SBA 7(a) Loans

SBA 7(a) loans are the most popular type of SBA loan, offering up to $5 million in funds for various purposes, such as working capital, equipment purchases, and real estate acquisitions. These loans are typically issued by banks and come with a maximum repayment period of 10 years or 25 years for real estate. Small Business Association 7(a) loans necessitate a 10% down payment for business acquisition or change of control deals (e.g., a partner buyout). However, note that some SBA lenders will require borrowers to put more than 10% equity into a transaction, perhaps as high as 15% – 25%.

SBA Express Loans or SBA Small Loans

SBA Express loans offer a faster financing option for small businesses, with up to $500,000 (up from $350,000 effective May 2023) in funds and a quick turnaround time of 36 hours or less. These loans can be used for working capital, equipment purchases, and real estate purchases, with interest rates negotiated between the borrower and the lender, and maximum rates set by the SBA.

SBA Express loans provide a valuable financing solution for businesses in need of quick funding without the lengthy approval process of traditional SBA loans.

SBA 504 Loans

SBA 504 loans, also known as CDC loans, are designed for businesses looking to finance the purchase of real estate or equipment. The Community Development Corporation (CDC) can contribute up to 40% of the total project costs, while a financial institution’s contribution could amount to 50%. The borrower may cover the remaining 10-20%.

SBA 504 loans have no maximum amount but consist of two separate payments: one for the CDC loan and one for the private lender loan. SBA 504 loans take longer to process and are more complex than standard 7(a) loans and are thus much less popular than 7(a) loans.


Qualifying for an SBA Loan: Tips and Requirements

Once you’ve selected the best SBA loan program for your business, it’s crucial to understand the qualifications and requirements for obtaining the loan. In this section, we’ll outline the basic eligibility criteria for SBA loans, discuss the importance of credit score, and provide tips on speeding up the approval process.

By adhering to these guidelines, you’ll increase your chances of successfully securing an SBA loan for your small business.

Basic SBA Loan Eligibility Criteria

To be eligible for an SBA loan, your business must be a for-profit entity, based in and actively operating within the US or its territories, possess reasonable owner equity to invest, and have explored other financial resources prior to seeking financial assistance.

Additionally, your business must be properly registered and legally operating in accordance with the SBA’s size standards. By meeting these basic eligibility criteria, you’ll demonstrate to lenders that your business is a sound investment and increase your chances of securing an SBA loan.

Credit Score and Its Importance

Credit score is a critical factor in determining whether you qualify for an SBA loan. A higher credit score increases your chances of being approved, with a minimum score of 680 typically required for SBA loan qualification. Having a low credit score can lead to increased interest rates, additional fees, or even rejection of the loan.

To improve your chances of securing an SBA loan, focus on maintaining a healthy credit score by making timely payments on your debts, keeping your credit utilization low, and checking your credit report regularly for errors.


Speeding Up the Approval Process

One way to speed up the SBA loan approval process is to seek out SBA Preferred or Express lenders, which offer expedited processing times. It is important to note that SBA Express loans are limited to a maximum loan amount of $250,000. Keep this in mind when considering your loan options.

To ensure your application is processed promptly, thoroughly review all documents before submission to guarantee they are complete and accurate and submit all required materials in a timely manner. By adhering to these tips, you’ll increase your chances of securing an SBA loan quickly and efficiently.



In conclusion, the SBA loan calculator is an invaluable tool for small business owners seeking to secure financing. By understanding the factors that impact SBA loan costs, the different types of SBA loans available, and the qualifications and requirements for obtaining a loan, you’ll be better equipped to make informed decisions about the best financing option for your business. Additionally, by exploring alternative financing options such as online lenders and business cash advances, you can find the perfect funding solution tailored to your business’s unique needs. Remember, knowledge is power – and with the right tools and information at your disposal, you’ll be well on your way to securing the financing your business needs to thrive.

SBA Loan Calculator Frequently Asked Questions

How much will an SBA loan give you?

An SBA loan can provide small businesses with long-term, low-cost government-backed loans ranging from $25,000 to $5 million.

What is the SBA loan payment on a $1,000,000 business loan?

A $1,000,000 business loan with an interest rate of 10% fixed for 10 years would have monthly loan payments of $13,215. However, to provide some margin for cash flow weakness in the business, banks will want to see projected and/or historical monthly cash flow of at least 1.15x that amount — $15,094 or $181,125 annually – in order to underwrite and approve the loan.

Does everyone get approved for SBA loan?

No, not everyone is approved for an SBA loan, but in general SBA loans are popular choice for borrowers since there is no collateral requirement and repayments terms of 10 or 25 years are longer than standard commercial loans. The majority of inquiries we see do not obtain financing, largely due to one or more of the following reasons: 1) insufficient business cash flow, 2) lack of an adequate down payment by the borrower 3) low credit score or 4) lack of industry experience in the case of a buyer acquiring a business.

It’s important to understand the eligibility requirements before you apply to increase your chances of a successful outcome.

What is the size of an SBA loan I could obtain for my business?

The loan capacity is based on interest rate, term, and debt service ratio cushion (DSCR). Typically the DSCR needs to be 1.15, but some lenders may want 1.20 or at most 1.25. Utilizing our calculator above, input the current SBA interest rate, term (10 or 25 years), and amount of your down payment. Take the monthly result SBA loan payment x 12 to determine the annual loan payment. That result multiplied by 1.15 (DSCR minimum) is the amount of annual cash flow needed. For example, annual cash flow (EBITDA) of $181,125 is needed for a $1M loan – $13,125 (monthly payment for 10 year, 10% loan) x 12 x 1.15.

This tool can calculate an SBA loan. Will it accurately calculate other types of loans such as a mortgage?

Yes, the math works the same for other types of loans. Simply enter the desired criteria.


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