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.
Example SBA 7(a) Scenarios
$350,000 Working Capital, 10-Year Term, 10.25% Rate
Estimated monthly payment ≈ $4,647. Total interest ≈ $207,640. Useful for inventory, hiring, and marketing.
$800,000 Business Acquisition, 10-Year Term, 10.00% Rate
Estimated monthly payment ≈ $10,594. Total interest ≈ $471,280. Often includes working capital and goodwill.
$1.2M Real Estate + Improvements, 25-Year Term, 10.00% Rate
Estimated monthly payment ≈ $10,530. Total interest ≈ $2,959,000. Long-term amortization lowers monthly cost.
$250,000 Equipment, 10-Year Term, 10.50% Rate
Estimated monthly payment ≈ $3,404. Total interest ≈ $158,480. Finance machinery and technology upgrades.
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.
Need SBA 7(a) Financing?
Connect with a qualified lender who specializes in SBA loans and can help you explore your financing options.