How to use this calculator
- Enter the loan amount you’re applying for.
- Enter the interest rate from your lender’s quote. SBA 7(a) rates are usually quoted as the prime rate plus a spread, for example “prime + 2.75%”.
- Choose the term: up to 10 years for working capital and equipment, or up to 25 years for real estate.
- Choose the guaranty fee. Use the standard schedule, enter the fee from your quote, or pick “Waived” if SBA isn’t charging one.
- Add other closing costs and choose whether to finance the guaranty fee.
SBA loan programs at a glance
The Small Business Administration doesn’t usually lend directly. It guarantees part of loans made by banks and other lenders, which lets them lend to businesses they might otherwise turn down, on longer terms.
| Program | Maximum | Typical use |
|---|---|---|
| 7(a) | $5 million | Working capital, equipment, real estate, refinancing, buying a business |
| 7(a) Express | $500,000 | Faster decisions; SBA guarantees 50% |
| 504 | $5 million SBA portion (more for some projects) | Buildings and major equipment, with a fixed-rate portion from a Certified Development Company |
| Microloan | $50,000 | Small loans through nonprofit lenders |
This calculator models a standard 7(a) loan with a fixed payment over the full term.
SBA 7(a) interest rates and caps
Lenders negotiate the rate with you, but SBA sets a maximum. For variable-rate 7(a) loans, the rate can’t exceed the base rate, usually the prime rate, plus these spreads:
| Loan amount | Maximum spread over prime (variable rate) |
|---|---|
| $50,000 or less | 6.5% |
| $50,001 to $250,000 | 6% |
| $250,001 to $350,000 | 4.5% |
| Over $350,000 | 3% |
Fixed-rate 7(a) loans have their own maximums. SBA publishes the current caps; check them, and compare your quote with the current prime rate, before you sign.
The guaranty fee and other costs
SBA charges lenders an upfront guaranty fee, which lenders pass on to borrowers. For loans longer than 12 months, the law sets it as a share of the SBA-guaranteed portion of the loan:
| Loan amount | SBA guarantee | Guaranty fee |
|---|---|---|
| $150,000 or less | 85% | 2% of the guaranteed portion |
| $150,001 to $700,000 | 75% | 3% of the guaranteed portion |
| Over $700,000 | 75% | 3.5% of the guaranteed portion, plus 0.25% on the part over $1 million |
SBA can reduce or waive these fees for a fiscal year, which starts October 1, so check the fee on your loan quote. For fiscal year 2026 (loans approved from October 1, 2025, through September 30, 2026), SBA charges the fees above, except that small manufacturers borrowing $950,000 or less pay no upfront fee, and veterans and their spouses pay none on SBA Express loans. New fees for fiscal year 2027 apply to loans approved from October 1, 2026.
Other costs can include packaging fees, appraisals, environmental reports, legal fees and title insurance for real estate.
Loans with terms of 15 years or more also carry a prepayment fee if you pay off 25% or more of the balance early in the first three years: 5% in year one, 3% in year two and 1% in year three.
Worked example
A $250,000 7(a) loan at 10.5% for 10 years. SBA guarantees 75% ($187,500), so the standard guaranty fee is 3% of that, $5,625. With the fee added to the loan:
- Amount financed: $255,625
- Monthly payment: $3,449.28
- Total interest over 10 years: $158,288
- APR including the guaranty fee and $1,500 of other costs: 11.19%
SBA loan payments by loan amount
Monthly payments at 10.5% with the standard guaranty fee added to the loan. Rates vary by lender, loan size and credit, so use the calculator above with your quote.
| Loan amount | SBA guaranty fee | Monthly payment, 10 years | Monthly payment, 25 years |
|---|---|---|---|
| $50,000 | $850 | $686 | $480 |
| $100,000 | $1,700 | $1,372 | $960 |
| $150,000 | $2,550 | $2,058 | $1,440 |
| $250,000 | $5,625 | $3,449 | $2,414 |
| $350,000 | $7,875 | $4,829 | $3,379 |
| $500,000 | $11,250 | $6,899 | $4,827 |
| $750,000 | $19,688 | $10,386 | $7,267 |
| $1,000,000 | $26,250 | $13,848 | $9,690 |
| $2,000,000 | $53,750 | $27,712 | $19,391 |
Who qualifies for an SBA loan
- A for-profit business operating in the U.S. that meets SBA’s size standards for its industry.
- A sound business purpose and the ability to repay from the business’s cash flow.
- Owners of 20% or more generally give a personal guarantee.
- The business can’t get reasonable credit elsewhere on similar terms without the SBA guarantee.
- Some lenders also require collateral or an equity injection, especially for startups and business purchases.
Compare an SBA offer with other financing on the same yardstick, APR. Short-term options such as merchant cash advances and invoice factoring are often quoted as a factor rate or a fee per 30 days, and can cost many times more once converted to an APR. Ask every provider for the total repayment, all fees and the expected term before you sign.
Frequently asked questions
What is the monthly payment on a $250,000 SBA loan?
What are SBA loan interest rates?
How much is the SBA guaranty fee?
Can I finance the guaranty fee?
What’s the difference between an SBA 7(a) and a 504 loan?
Sources
- 7(a) loans — U.S. Small Business Administration
- 504 loans — U.S. Small Business Administration
- Loans: all SBA loan programs — U.S. Small Business Administration
- 15 U.S.C. §636 — 7(a) loan guarantee fees — Legal Information Institute, Cornell Law School