SBA 7(a) Loan Calculator

Estimate the monthly payment on an SBA 7(a) loan from the loan amount, interest rate and term. The calculator also works out the SBA-guaranteed portion, the up-front guaranty fee from the standard fee tiers, the cash you receive after fees and the APR including those costs.

$
SBA 7(a) loans go up to $5 million.
%
Usually the prime rate plus a spread capped by SBA. Enter the rate your lender quotes.
Up to 10 years for working capital and most equipment, up to 25 years for real estate.
A percentage of the SBA-guaranteed part of the loan. SBA waives it for some loans in some years; ask your lender.
$
Packaging, appraisal, legal and other lender fees, if any.
Monthly payment$6,746.75120 payments over 10 years
APR (includes fees)
11.05%
SBA-guaranteed portion (75%)
$375,000.00
SBA guaranty fee
$11,250.00
Cash you receive
$488,750.00
Total interest
$309,609.99
Total cost of borrowing
$320,859.99
Total of payments
$809,609.99

Most SBA 7(a) loans have a variable rate tied to the prime rate, so the payment can change when prime moves. This estimate holds the rate fixed.

Amortization schedule
YearPaymentPrincipalInterestBalance
1$80,961.00$29,871.44$51,089.56$470,128.56
2$80,961.00$33,163.37$47,797.63$436,965.19
3$80,961.00$36,818.07$44,142.93$400,147.12
4$80,961.00$40,875.56$40,085.44$359,271.56
5$80,961.00$45,380.18$35,580.82$313,891.38
6$80,961.00$50,381.25$30,579.75$263,510.13
7$80,961.00$55,933.44$25,027.56$207,576.69
8$80,961.00$62,097.49$18,863.51$145,479.20
9$80,961.00$68,940.86$12,020.14$76,538.34
10$80,960.99$76,538.34$4,422.65$0.00

How the payment and guaranty fee are calculated

Payment = loan amount × r ÷ (1 − (1 + r)−n), where r = annual rate ÷ 12 and n = 12 × years

Guaranteed portion = 85% of loans up to $150,000, 75% of larger loans

Guaranty fee = 2% of the guaranteed portion (loans up to $150,000), 3% (up to $700,000), or 3.5% of the first $1,000,000 guaranteed + 3.75% above that

The APR is the yearly rate at which your payments repay the loan minus the guaranty fee and other closing costs. Payments are rounded to the cent and the last payment absorbs the rounding.

Example

A $500,000 SBA 7(a) loan at 10.5% for 10 years costs $6,746.75 a month. SBA guarantees 75%, or $375,000, so the standard guaranty fee is 3% of that: $11,250. You net $488,750, interest totals $309,609.99 and the APR including the fee is 11.05%. If the fee is waived, the payment is the same and the APR equals the 10.5% rate.

A $100,000 loan on the same terms is $1,349.35 a month with an 85% guarantee and a $1,700 fee (APR 10.91%). A $1,000,000 real estate loan at 10.5% over 25 years is $9,441.82 a month with a $26,250 fee and $1,832,542.19 of interest over the life of the loan.

SBA 7(a) terms and rates

SBA 7(a) loans go up to $5 million. Maximum terms are generally 10 years for working capital and most equipment and 25 years for real estate. Lenders set the rate, but SBA caps it at the prime rate plus a maximum spread that depends on the loan size, so most 7(a) loans are variable and the payment moves with prime. SBA sets the guaranty fee each fiscal year (starting October 1) and has waived it for some loan sizes or business types in some years, so confirm the current fee with your lender. The calculator's standard tiers apply to loans longer than 12 months.

Frequently asked questions

Who pays the SBA guaranty fee?

The lender pays the fee to SBA and normally passes it on to the borrower, who can pay it at closing or from the loan proceeds. It is a one-time charge on the guaranteed portion of the loan, not on the full amount.

How much does SBA guarantee?

SBA guarantees 85% of 7(a) loans of $150,000 or less and 75% of larger loans. The guarantee protects the lender, not the borrower; you still owe the full loan.

Is an SBA 7(a) rate fixed or variable?

Either is allowed, but most 7(a) loans are variable, priced as the prime rate plus a spread. This calculator holds the rate fixed, so rerun it at a higher rate to see how a prime increase would change your payment.

Why is the APR higher than the interest rate?

The guaranty fee and other closing costs reduce the cash you actually receive while you still repay the full loan amount. The APR spreads those costs over the term, so a waived fee or a longer term brings the APR closer to the interest rate.

Sources

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PmtCalc provides estimates for education and planning only. Results are not an offer of credit, a loan approval, or financial, tax or legal advice. Actual terms depend on the lender and your situation. How we calculate and test these results.