How this calculator works
The SBA guarantee fee is a percentage of the guaranteed portion of the loan. It's added to the loan and repaid with fixed monthly payments over 10 years (working capital and equipment) or 25 years (real estate). Check the current SBA fee schedule for your loan size.
Worked example
With the example values below: Monthly payment, $4,828.99 (10-year term). Change any number above to run your own.
What you enter
| Input | Example |
|---|---|
| Loan amount | $350,000 |
| Interest rate | 10.5% |
| Term | 10 years (working capital, equipment) |
| Guarantee feeCharged on the guaranteed portion; check current SBA schedule | 3% |
| SBA guaranteed portion | 75% |
SBA 7(a) vs. 504 loans
SBA loans are made by banks and other lenders, with the US Small Business Administration guaranteeing part of the loan. The guarantee reduces the lender's risk, which allows longer terms and lower down payments than many conventional business loans.
| Feature | 7(a) | 504 |
|---|---|---|
| Maximum loan | $5 million | Typically $5 million to $5.5 million SBA portion |
| Uses | Working capital, equipment, real estate, buying a business, refinancing | Real estate and major fixed assets |
| Terms | Up to 10 years (25 for real estate) | 10, 20 or 25 years |
| Rate | Fixed or variable, capped above prime | Fixed on the CDC portion |
| Down payment | Often 10% | Usually 10% |
SBA guarantee fees
SBA loans carry an upfront guarantee fee charged as a percentage of the guaranteed portion of the loan, not the whole loan. Fee levels depend on loan size and term and the SBA updates them each fiscal year, sometimes reducing them for smaller loans. The calculator adds the fee to the loan, as many borrowers do, so you can see the payment including it.
Expect other closing costs as well, such as packaging fees, appraisal and legal costs for real estate loans.
Eligibility
Lenders often prefer two or more years in business, though startups can qualify with a strong plan and owner experience.
- A for-profit business operating in the US, within SBA size standards.
- A sound business purpose and the ability to repay from cash flow.
- Owners invest their own equity, typically 10% or more.
- Owners with 20% or more of the business give personal guarantees.
- Good personal credit and no recent defaults on government debt.
Applying
Start with an SBA-preferred lender, which can approve loans without waiting for the SBA. Prepare business and personal tax returns, financial statements, a debt schedule, projections and a business plan. Approval often takes 30 to 90 days. If you need money faster, compare a conventional business loan, but check the total cost carefully.
Frequently asked questions
What is the interest rate on an SBA loan?
SBA 7(a) rates are set by the lender but capped at a spread above the prime rate, with higher caps for smaller loans. 504 loans have a fixed rate on the CDC portion tied to Treasury yields.
How much can I borrow with an SBA loan?
Up to $5 million with a 7(a) loan. 504 loans can finance larger projects, with the SBA-backed CDC portion typically up to $5 million to $5.5 million.
How long are SBA loan terms?
7(a) loans run up to 10 years for working capital and equipment and up to 25 years for real estate. 504 loans run 10, 20 or 25 years.
What credit score do I need for an SBA loan?
The SBA doesn't set a minimum, but most lenders look for a personal credit score of about 650 to 680 or higher, and SBA uses a business credit screening score for smaller 7(a) loans.
Do SBA loans require a down payment?
Usually about 10% of the project cost, sometimes more for startups or special-use properties. 504 loans typically require 10% from the borrower.
Grow what this calculator projects.
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Estimates for planning only, not financial, tax or legal advice. Tax tools use 2026 federal figures (brackets, $16,100 / $32,200 standard deduction, $19,000 gift exclusion, $15M lifetime exemption). Rates shown as defaults are examples; replace them with quotes you actually receive.