SBA Loan Calculator: What Can You Afford?

Plug in the numbers to see how much your SBA loan will cost.

How an SBA Loan Calculator Works

If you have an offer for an SBA loan, it's incredibly easy to use this SBA loan calculator to figure out what your monthly payments will look like.

To use this calculator, put in the loan amount you were offered or you're interested in receiving, the term (in months), and the interest rate you were quoted.

While SBA lenders can choose to pay the SBA fees associated with your loan, many SBA loans can come with fees attached to your offer. If that's the case, be sure to include all fees you were quoted so that you can get a complete and accurate picture of what your APR really is.

Plug these numbers into your SBA loan calculator, and you'll get the total amount of money you'll end up repaying, your monthly payments, your effective APR, and the total cost of borrowing the money.

Want to learn more about SBA loans and the rates and fees associated with the most popular SBA loan programs? Keep reading to put context behind the numbers of our SBA loan calculator.

How Do SBA Loans Work?

The term, "SBA loans," is somewhat of a misnomer.

The Small Business Administration itself doesn’t issue business loans.

Instead, the government agency guarantees business loans that are fulfilled by traditional banks.

The guarantee is intended to help small business owners access affordable financing that they wouldn’t normally qualify for from a bank. The general idea here is that, because the government is guaranteeing that the bank will get most of its money back if the borrower defaults on the loan, they’re more willing to work with riskier small business owners that they’d normally decline. It’s like the government is acting as an insurance agency on the loan.

In the end, you’ll have a (slightly) easier time qualifying for low-rate, long-term financing with the help of the SBA.

The SBA is fronting the brunt of the risks associated with lending, but you’ll still have to pay interest and fees on the loan.

Let’s make sense of your SBA loan calculator—what do SBA loan rates and fees look like?

Well, it depends on the type of SBA loan you’re taking on. The SBA offers three different financing programs: the 7(a) Loan Program, the CDC/504 Loan Program, and the Microloan Program.

Here are the rates and fees you need to know with each.

SBA Loan Calculator: Rates and Fees for the 7(a) Loan Program

The 7(a) Loan Program is the SBA’s most popular financing program. That’s largely because it’s a catch-all loan program, appropriate for a lot of different business needs.

The 7(a) Loan Program offers term loans of up to $5 million for purposes like business expansion, major projects, working capital, and so on.

Because the 7(a) loan is the most popular and common SBA loan, we’ll dive deep into how you can use the SBA loan calculator for your 7(a) loan offer.

What rates and fees can you expect to see on a 7(a) SBA loan calculator? Here’s how they break down.

7(a) Loan Rates

The rates you’ll get on your 7(a) loan actually aren’t determined by the SBA. They’ll vary by the SBA lender you’re working with, as the bank issuing the 7(a) loan sets the rates.

However, SBA lenders are subject to the SBA’s set maximums—so you won’t be charged too high of an interest rate on your loan.

The exact SBA loan rate that you get from your SBA loan calculator comes from two parts—a base rate and an allowable spread (the SBA maximum).

The base rate is determined by the current prime rate (usually hovering somewhere between 3% and 4%). The allowable spread is what the SBA lender can charge on top of the base rate to arrival at your final interest rate.

For loans with terms shorter than seven years, the maximum spread is no more than 2.25%. For loans with terms of seven years or more, the maximum spread is 2.75%.

All in, your final rate could be somewhere between 6% to 7%.

However, that’s not the APR that will come out of an SBA 7(a) loan calculator. In order to get a good idea of the APR of your 7(a) loan, you need to consider the fees associated with the loan.

7(a) Loan Fees

Remember, SBA loans are one of the most affordable financing options on the market, but you will need to pay at least one fee on a 7(a) loan.

That’s the guarantee fee—a fee that’s unique to SBA loan programs.

The guarantee fee is a fee charged for the service of guaranteeing the loan.

To offer these loans, the SBA lender has to pay a portion of the guaranteed amount to the government. In many cases, the lender passes this cost along to you in the form of a guarantee fee.

The actual fee that comes included in your loan offer (and plugged into your SBA 7(a) loan calculator) depends on the details of the loan.

The fee is based on the loan’s maturity and the dollar amount guaranteed—not the total loan amount.

While you’ll know what your guarantee fee is when you get your loan offer, the SBA sets these general guidelines:

  • Loans of less than $150,000 will have no guarantee fee.

  • Loans of more than $150,000 with a term of one year or less will have a guarantee fee of 0.25% of the guarantee portion of the loan.

  • Loans between $150,000 and $700,000 and maturities of more than one year will have a guarantee fee that’s 3% of the guaranteed portion of the loan.

  • Loans more than $700,000 and more than one year in maturity will have a guarantee fee of 3.5% of the guaranteed portion.

  • Loans of more than $1 million will have an additional 0.25% fee added onto the guaranteed portion of the loan.

What Will an SBA Loan Cost? Here’s an Example to Plug Into Your SBA Loan Calculator

Let’s take a look at the 7(a) loan’s rates and fees in action with an example.

Say you’ve qualified for an SBA loan from a lender who’s offering you $200,000 over a 3 year term, with an interest rate of 5.75%.

Before you get going with an SBA loan calculator, you need to know what portion of the loan the SBA is guaranteeing—that percentage will determine what your guarantee fee will end up being.

The SBA will guarantee 85% on loans of up to $150,000 and 75% on loans of more than $150,000. So, for this example, let’s say the SBA guarantees 75% of your $200,000 loan—or $150,000. In this case, the guarantee fee set on your loan will be $4,500.

Plugging all these numbers into your SBA loan calculator, you’ll have to pay back $218,223.29 in total, with monthly payments of $6,061.76, at an effective APR of 7.12%.

SBA Loan Calculator: Rates and Fees for the CDC/504 Loan Program

Another SBA loan program available to small business owners is the CDC/504 loan program.

Whereas the 7(a) loan program is a broad option for general financing purposes, the CDC/504 loan program is much more specific.

CDC/504 loans are specifically for major fixed assets purchases. So if you’re looking to finance a purchase of a major piece of equipment or a major real estate purchase, then this could be the loan for you.

These loans are in part funded by certified development companies (CDCs), nonprofit organizations looking to aid community development.

What would your SBA 504 loan calculator look like? Here’s the quick information you should know.

CDC/504 Loan Rates

The rates on CDC/504 loans are actually pretty complicated—unlike the 7(a) loan program.

The complication comes from the fact that CDC/504 loans are funded by two different entities—a traditional bank, and a certified development company (CDC).

The simple answer on CDC/504 rates for your SBA loan calculator is that your interest rate will be somewhere between 5% to 6%.

If you’re curious how the SBA gets those numbers, it comes down to this: Because CDC/504 loans are made up of two loans (one from a financial institution and one from a CDC), the interest rate you end up paying is actually a blended rate between the CDC’s rates (around 4% to 5%) and the rate you’d get at a bank.

CDC/504 Loan Fees

With CDC/504 loans, the SBA still guarantees the 50% that the bank lender puts down for the loan (the CDC generally puts down 40%, leaving the borrower with a 10% down payment).

The SBA doesn’t fully outline which fees come with a 504 loan—making it hard to use an SBA loan calculator for this program.

However, you can expect to pay some sort of guarantee fee (passed onto you from the bank lender), a servicing fee (paid to the CDC for providing the 40% debenture), and a fee paid to a central servicing agent.

However, the SBA does ensure that the three possible fees won’t total more than 3% of the debenture. (And in some cases, you can actually finance the fees with the 504 loan proceeds.)

All in, the interest rate you’re quoted on your CDC/504 loan won’t show the full picture of what you’ll be paying. Use an SBA loan calculator to know exactly what your APR will be.

SBA Loan Calculator: Rates and Fees for the Microloan Program

The third SBA loan program available to small business owners is the Microloan program.

Microloans are small dollar loans made to eligible small businesses and certain non-profits. With the Microloan program, you can get up to $50,000 for your small business.

The Microloan program is intended to help small business owners grow their businesses with affordable working capital.

But just how affordable can a Microloan be? Here are the rates and fees you need to know for your SBA loan payment calculator.

Microloan Rates & Fees

With the Microloan program, the SBA issues funds to specially designated intermediary lenders, which are nonprofit community-based organizations with experience lending to businesses in their areas.

For that reason, the rate you get on your Microloan isn’t up to the SBA—it depends on the microlender you’re working with. Interest rates will typically vary between 8% and 13%.

Again, any fees on a Microloan is fully up to the intermediate lender you’re working with, making your SBA loan payment calculator easy to use!

What are the Current SBA Loan Rates?

While SBA loan rates do stay pretty consistent, they do vary year to year.

So one year you might get a certain APR on your SBA loan calculator, and the next year you get a figure much higher.

What are the current SBA loan rates?

Here's a quick overview of what to expect on an SBA loan offer in 2017:

SBA Loan SizeSBA Loan Rates for 7(a) Loan Paid Off in Less Than 7 YearsSBA Loan Rates for 7(a) Loan Paid Off in More Than 7 Years
Less than $25,000
8.5% (4.25% base rate plus 4.25% markup)
9% (4.25% base rate plus 4.75% markup)
$25,000 to $50,000
7.5% (4.25% base rate plus 3.25% markup)
8% (4.25% base rate plus 3.75% markup)
More than $50,000
6.5% (4.25% base rate plus 2.25% markup)
7% (4.25% base rate plus 2.75% markup)

Interested in SBA Loans? Here are 3 Other Loan Products to Consider

SBA loans are fantastic loan options for small business owners.

But their low-rates and long-terms are hard for the average entrepreneur to qualify for. Remember, these loans are still issued by banks. And while the SBA’s guarantee does help get more small business owners approved by traditional banks, they’re still very hard to qualify for.

If you find yourself not able to qualify for SBA loans, here are 3 other similar products to consider.

Term Loans

Term loans are the type of business loan that you know well. You get access to a lump sum of capital, which you’ll pay back with fixed monthly payments over a set amount of time.

In the past, the only lenders offering term loans were traditional banks. But with the small business lending space expanding these days, online lenders have entered the market to offer term loans to businesses who can’t qualify with banks.

These online lenders (like Bond Street, Lending Club, and Funding Circle) offer similarly large loans over a long period of time—and the best part, at low interest rates.

These term loans typically offer up to $1 million in financing over terms of 1 to 5 years. Rates range from 7% to 30%.

See what a term loan would cost with our Term Loan Calculator.

Business Lines of Credit

A business line of credit offers large amounts of flexible financing. Much like a credit card, a line of credit gives you access to a pool of funds that you can draw on whenever you want or need to for your business, paying interest only on the capital you take out. Once you’ve repaid what you drew in full, your line of credit gets refilled to its original amount.

A business line of credit is a good option for borrowers who could use a cushion on their cash flow.

Some online line of credit lenders offer amounts, terms, and rates that are similar to what you can qualify for with a medium-term lender or even the SBA.

Learn more about business lines of credit.

Equipment Financing

If you were planning on using the funds from an SBA loan to make a major equipment purchase for your business, equipment loans are another option to consider.

As the name suggests, equipment financing helps you pay for the pricey new or used equipment your business needs to grow.

Equipment lenders will offer you up to 100% of the value of your new equipment, which you’ll pay back over a set period of time—usually 1 to 5 years, or the expected lifetime of the equipment.

One benefit of pursuing this type of financing is that it could be slightly easier to qualify for low rates (typically ranging from 8% to 30%). That’s because an equipment loan is self-securing. The equipment you purchase with the loan acts as collateral for the financing—giving lenders some reassurance that they’ll get their money back in the case that you default on the loan.

See what an equipment loan would cost with our Equipment Loan Calculator.

Ready to Grow Your Business?

Last updated August 20, 2019