SBA 7(a) Loan Calculator
Calculate monthly payments, total interest, and payoff timelines for SBA 7(a) loans up to $5 million. Compare terms and see real examples.
Common SBA 7(a) Loan Examples
See real payment examples for popular SBA 7(a) loan amounts. These calculations use current market rates and typical terms.
| Loan Amount | Rate | Term | Monthly Payment | Total Interest | Total Cost |
|---|---|---|---|---|---|
| $100,000 | 10.5% | 10 years | $1,321 | $58,520 | $158,520 |
| $250,000 | 10.0% | 15 years | $2,685 | $233,300 | $483,300 |
| $500,000 | 9.5% | 20 years | $4,620 | $608,800 | $1,108,800 |
| $1,000,000 | 10.0% | 25 years | $9,087 | $1,726,100 | $2,726,100 |
📊 Example Calculations Note
These examples use current market rates for illustration. Actual rates vary based on creditworthiness, business financials, collateral, and market conditions. Contact a qualified SBA lender for personalized rate quotes.
Loan Details
Maximum: $5,000,000
Typical range: 9.5% - 10.5%
Auto-set based on loan purpose (Real Estate: 25 years, Others: 10-15 years)
Quick Select Amount:
SBA 7(a) Loan Key Features
Loan Details
- • Loan amounts up to $5 million
- • Terms up to 25 years for real estate
- • Terms up to 10 years for equipment/working capital
- • SBA guarantees 75-85% of the loan
Typical Rate Structure
- • Loans ≤ $50K: Prime + 3.5% to 4.25%
- • Loans $50K-$250K: Prime + 2% to 2.75%
- • Loans $250K-$5M: Prime + 3% max
- • Rate varies by lender and qualifications
Understanding SBA 7(a) Loans
SBA 7(a) loans are the most popular small business financing option, offering up to $5 million with government backing that reduces lender risk and provides better terms for borrowers.
SBA 7(a) Loan Structure
- Rates typically based on prime rate + margin (APR varies)
- Terms: up to 10 years (working capital/equipment), up to 25 years (real estate)
- Guarantee: up to 85% (≤$150K) or 75% (>$150K) reduces lender risk
- Fees: guaranty fee and packaging fees may apply
Key Benefits
- Lower down payments (as low as 10–15%)
- Longer repayment terms (up to 25 years for real estate)
- Competitive interest rates tied to prime
- Flexible use of funds and working capital support
Who Qualifies for SBA 7(a) Loans?
- Small businesses that meet SBA size standards
- For-profit businesses operating in the United States
- Good credit, demonstrated repayment ability, and sufficient cash flow
- Owner investment of at least 10–15%
- Businesses not engaged in speculative activities
Common Uses for SBA 7(a) Loans
Real Estate
Purchase or refinance commercial real estate for business use.
Business Acquisition
Buy an existing business, franchise, or merge with another company.
Working Capital
Fund daily operations, payroll, inventory, and cash flow needs.
Equipment Purchase
Buy machinery, vehicles, technology, and other business equipment.
Complete Guide to SBA 7(a) Loan Calculations
SBA 7(a) Loan Examples by Industry
Restaurant/Food Service
$350,000 for equipment, renovation, working capital
Manufacturing
$800,000 for machinery and facility expansion
Professional Services
$250,000 for office space and technology
Retail
$500,000 for inventory and store buildout
Healthcare
$1.2M for medical equipment and facility
Technology/Software
$400,000 for development and scaling
Understanding Your SBA 7(a) Payment Calculation
How Our Calculator Works
Payment Formula
Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1]
- P = Principal loan amount
- r = Monthly interest rate (annual rate ÷ 12)
- n = Total number of payments (years × 12)
Rate Calculation
SBA 7(a) Rate = Prime Rate + Lender Margin
- Prime Rate: Currently ~8.5% (variable)
- Margin: 1.75% to 6.75% based on loan size/term
- Total Rate: Typically 10.25% to 15.25%
SBA 7(a) Rate Matrix by Loan Size and Term
| Loan Amount | ≤7 Years | 7-25 Years | Typical Use |
|---|---|---|---|
| ≤$350,000 | Prime + 6.75% | Prime + 6.75% | Working capital, equipment |
| $350,001-$5M | Prime + 4.75% | Prime + 4.75% | Real estate, acquisitions |
| Express (≤$500K) | Prime + 6.5% | Prime + 6.5% | Fast approval needed |
*Rates as of 2025. Prime Rate currently ~8.5%. Actual rates vary by lender and borrower qualifications.
Cash Flow Impact Analysis
Debt Service Coverage Ratio (DSCR)
Most lenders require DSCR ≥ 1.25x for SBA 7(a) loans
Working Capital Impact
Consider how loan payments affect daily operations
SBA 7(a) Calculator FAQs
What terms are available for SBA 7(a) loans?
Up to 10 years for working capital and equipment; up to 25 years for real estate.
How are SBA 7(a) rates set?
Typically based on the Prime Rate plus an allowable margin that varies by loan size and term.
Do I need collateral?
Collateral is often required for larger loans; real estate and equipment may serve as collateral.
Can I use 7(a) for a business acquisition?
Yes. SBA 7(a) commonly finances acquisitions, including goodwill and working capital.
Related SBA Loan Resources
SBA 504 Calculator
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Calculate SBA 504 Payments →SBA vs Bank Loan Comparison
See how much you could save with SBA financing vs conventional bank loans.
Compare Loan Options →SBA Eligibility Checker
Find out if you qualify for SBA 7(a) loans in 60 seconds with our eligibility assessment.
Check My Eligibility →Current SBA Loan Rates
See the latest SBA 7(a) interest rates and understand how your rate is determined.
View Current Rates →SBA Loan Requirements
Complete guide to SBA 7(a) eligibility requirements, credit scores, and documentation.
See Requirements →SBA Loan Type Comparison
Compare all SBA loan types to find which saves you the most money for your situation.
Compare All Types →Ready to Apply for Your SBA 7(a) Loan?
Now that you've calculated your payments, connect with a qualified SBA lender who can help you navigate the application process and secure financing.