SBA Loan Calculator
7(a) & 504, with the real fees.
SBA-backed loans are cheaper than bank term loans, but the guarantee fee schedule is opaque. We tier it correctly: 0% under $1M, 1.45% to $2M, 3.5% above. Pick a program, see your net proceeds, monthly payment, and effective APR.
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SBA 7(a) vs. SBA 504 — Which to Pick
SBA 7(a) is the workhorse: working capital, equipment, refinance, partner buyout, real estate. Up to $5M, 10–25 year term, prime + 2.75% to prime + 4.75%. Guarantee fee tiers: 0% under $1M, 1.45% on the guaranteed portion at $1–2M, 3.5% above.
SBA 504 is for owner-occupied commercial real estate and major equipment. Project amount up to $5.5M structured as 50% bank + 40% CDC + 10% borrower. The CDC portion is at a fixed below-market rate (currently ~6%). Combined upfront fees are roughly 2.15% of the CDC portion.
Guarantee Fee — How It Actually Works
The SBA charges the lender an upfront guarantee fee on the guaranteed portion of the loan. The lender passes it to you. The percentage of the loan that's guaranteed depends on size:
- ≤ $150,000: 85% guaranteed
- $150,001 – $5,000,000: 75% guaranteed
Then the fee tier on that guaranteed portion: 0% if total loan ≤ $1M, 1.45% if ≤ $2M, 3.5% above. Our calculator does the math: fee = (loan × guarantee%) × tier%.
What Underwriters Want
- Personal credit 680+ on the owners with 20%+ equity in the business.
- Two years of business operating history, ideally with audited or reviewed financials.
- DSCR 1.25+ based on three years of tax returns.
- Personal guarantee from any owner with 20%+ equity. Always.
- Collateral if available — but the SBA can't decline a 7(a) solely for lack of collateral.
Pros and Cons
- Pro: Longer terms (10 years working capital, 25 years real estate) than conventional bank loans.
- Pro: Lower rate ceiling (prime + 4.75% max on most 7(a)s).
- Pro: No prepayment penalty on terms under 15 years.
- Con: 60–90 days to close, sometimes longer.
- Con: Heavy paperwork — three years of tax returns, business plan, debt schedule, projections.
- Con: Personal guarantee plus liens on business assets means meaningful skin in the game.