SBA Loan Calculator
Calculate SBA 7(a) and 504 loan payments, fees and total cost for small business financing.
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Frequently Asked Questions
What is an SBA 7(a) loan?
The SBA 7(a) is the most common small business loan, guaranteed up to 85% by the Small Business Administration. Maximum loan amount is $5 million. Rates are prime plus a spread (capped by SBA). Terms up to 10 years for working capital, 25 years for real estate. Requires strong personal credit (640+), 2+ years in business, and ability to repay from cash flow.
SBA 7(a) vs SBA 504 loan: what is the difference?
SBA 7(a) is general purpose — working capital, equipment, real estate, acquisitions. SBA 504 is specifically for major fixed assets (real estate, large equipment). 504 loans typically offer lower rates and longer terms (up to 25 years) for real estate. 504 requires a Certified Development Company (CDC) partner and at least 10% borrower equity contribution.
How long does SBA loan approval take?
SBA Express loans (up to $500,000): 36-hour approval, 2-4 weeks to fund. Standard SBA 7(a): 30-90 days. SBA 504: 60-90 days. Working with an SBA Preferred Lender (PLP) speeds up approval significantly as they can approve in-house. Prepare 2 years of business and personal tax returns, financial statements, and a business plan to expedite the process.
SBA 7(a) and 504 loans: payments at 2026 terms
SBA loans are made by banks and guaranteed by the Small Business Administration, which lets lenders accept more risk and longer terms than a conventional loan. The 7(a) program covers working capital, equipment and real estate up to $5 million; the 504 program finances real estate and heavy equipment through a bank first mortgage plus a fixed-rate SBA debenture. Rates on 7(a) loans are capped at prime plus 2.25% to 6.5% depending on size and term; with prime at about 7% in 2026, most borrowers see 9% to 11%.
| Loan | Amount | Rate | Term | Monthly payment | Total interest |
|---|---|---|---|---|---|
| 7(a) working capital | $150,000 | 10.5% | 7 years | $2,528 | $62,400 |
| 7(a) equipment | $350,000 | 10.0% | 10 years | $4,625 | $205,033 |
| 7(a) real estate | $1,000,000 | 9.5% | 25 years | $8,737 | $1,621,000 |
| 504 real estate (debenture portion) | $1,000,000 | 6.5% | 25 years | $6,752 | $1,025,600 |
The 504 rate is fixed for the life of the loan; 7(a) rates are usually variable, resetting quarterly with prime.
Worked example and the guarantee fee
A $350,000 7(a) loan over 10 years at 10%: payment $4,625.28, total interest $205,033. The SBA guarantee fee is charged on the guaranteed portion (75% for loans over $150,000): 3% of $262,500 is $7,875, which is usually rolled into the loan. In 2026 the SBA waived the fee on loans of $1 million and under for some programs; check the current fee schedule, since it changes each fiscal year. Lender packaging fees add $2,000 to $5,000.
Who qualifies
A for-profit US business within SBA size standards, two years of operating history for most lenders (startups can qualify with a strong plan, industry experience and 10% to 20% equity injection), personal credit of 650 and up, no recent bankruptcies or federal debt defaults, and the owner has already used personal assets and could not get the loan on reasonable terms elsewhere. Every owner with 20% or more must personally guarantee the loan. Collateral is taken when available but a shortfall does not by itself disqualify a 7(a) application.
7(a) versus 504 for real estate
For an owner-occupied building, the 504 structure is usually cheaper: 50% from a bank at market rates, 40% from the SBA debenture at a fixed rate below the 7(a) cap, 10% down. Over 25 years on a $1 million project the fixed rate saves well over $100,000 against a variable 7(a) loan if rates stay where they are, and protects against them rising. The 7(a) is the better fit when the loan mixes real estate with working capital or when speed matters, since 504 loans take 60 to 90 days to close.
The timeline and the paperwork
Three years of business and personal tax returns, year-to-date financials, a debt schedule, a business plan with projections for new businesses, and Form 1919. Standard 7(a) approvals take 30 to 90 days; SBA Express loans up to $500,000 are approved in days with a lower 50% guarantee and a higher rate. The payments in the table assume no prepayment; 7(a) loans with terms of 15 years or more carry a prepayment penalty in the first three years (5%, 3%, 1%).