SBA Loan Calculator

Which SBA loan program fits your situation

SBA 7(a), the workhorse: Up to $5 million, used for working capital, equipment, real estate, buying out a partner, or acquiring another business. Longest available: 25 years for real estate; 10 years for everything else, working capital included, unless it buys equipment with a useful life over 10 years. The most common SBA loan and the most flexible.

SBA 504, real estate and major equipment only: Three-part structure: usually 50% from a private lender, 40% from an SBA-approved CDC (Certified Development Company) and 10% from the borrower, who puts in 15% if the business is two years old or less or the building is special-purpose, and 20% if both. The CDC portion has a fixed rate set from 10-year Treasury rates. The CDC loan is capped at $5 million ($5.5 million per project for small manufacturers and some energy projects), so the whole project can be two to three times that. Best when buying commercial real estate or expensive equipment for your own use.

SBA Microloan, small businesses, up to $50,000: Administered through nonprofit intermediaries, often with technical assistance bundled in. Higher rates (8-13%) but accessible to startups, women-owned, and minority-owned businesses that might not qualify for 7(a). Average loan size around $13,000.

Qualification reality check

SBA lenders look at five factors, often called the "5 C's of credit": Character (your personal credit history, criminal record, business reputation), Capacity (your business's cash flow and ability to service the debt), Capital (your equity invested in the business), Collateral (assets the bank can claim if you default), and Conditions (industry trends, business climate). All five must pass scrutiny.

Minimum DSCR (Debt Service Coverage Ratio) of 1.15-1.25 is required by most lenders. This means your business's net operating income must exceed annual debt service by 15-25%. A loan with $60,000 annual debt service needs $69,000-$75,000 NOI to pass underwriting. The two-year historical financials must demonstrate this; projections alone aren't sufficient unless the loan funds something that will dramatically improve cash flow.

Personal guarantee is mandatory from anyone owning 20%+ of the business. This means your personal assets are on the hook if the business defaults. SBA loans cannot be "non-recourse." This is the price for the SBA guarantee that lets banks offer better terms.

2026 SBA fee structure

SBA's upfront guaranty fee for 7(a) loans of more than 12 months approved in fiscal year 2026 (Oct 1, 2025 - Sep 30, 2026) is charged on the guaranteed portion (up to 85% of a loan of $150,000 or less, 75% above): 2% for loans of $150,000 or less, 3% for $150,001-$700,000, and 3.5% for $700,001-$5,000,000, with 3.75% on the guaranteed portion over $1,000,000. Manufacturers borrowing $950,000 or less pay 0%. Fiscal year 2027 (from Oct 1, 2026) keeps the same schedule, with 0% for loans of $700,000 or less to manufacturers, food-supply businesses and rural businesses. The lender also pays SBA 0.55% a year on the guaranteed balance, and may not pass it on to you. For 504 loans the upfront fee is 0.5%.

Beyond the SBA's fees, 7(a) lenders may charge only what SBA allows, with no origination fee: packaging fees ($1,500-3,000), closing costs ($2,000-5,000), title insurance for real estate-backed loans (~0.5% of loan), appraisal fees ($500-3,500 depending on collateral), and legal review ($1,500-5,000). Total non-SBA fees typically add up to 1-2% of the loan amount.

SBA charges a prepayment fee (the subsidy recoupment fee) on 7(a) loans of 15 years or more when you prepay more than 25% of the balance in any of the first three years: 5% of the prepayment in year 1, 3% in year 2, 1% in year 3, nothing after. Prepaying 25% or less in a year costs nothing. This matters if you plan to refinance into a private loan once your business establishes credit history: a full refinance is free from year 4.

Speeding up the SBA process

• Use an SBA Preferred Lender (PLP): Banks designated as PLP can approve loans without sending to SBA for review, cutting weeks off the timeline. Wells Fargo, Live Oak Bank, Newtek, Huntington, and Celtic Bank are large PLP lenders.
• Prepare documents before applying: 3 years of personal and business tax returns, year-to-date P&L and balance sheet, debt schedule, business plan (especially for new businesses), personal financial statement, business and personal credit reports, articles of incorporation, lease or purchase agreement for the use of funds.
• Consider SBA Express for under $500K: 36-hour SBA decision, lower paperwork burden, slightly higher rate. Good for working capital and equipment needs that don't require the full 7(a) underwriting.
• Use a broker selectively: A good SBA broker knows which lenders favor which industries. They charge 1-2% of loan amount. Worth it if you've been declined or have a complex situation; not worth it for straightforward applicants.
• Build the relationship before you need the loan: Open business checking at a likely SBA lender 6-12 months before applying. Established relationships speed approvals significantly.

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