SBA Loan Payment Calculator

How Your SBA Loan Payments Are Calculated

Thanks to support from the Small Business Administration (SBA), SBA loan rates are some of the most enviable business financing interest rates. To estimate your potential SBA loan payments, our calculator accounts for 4 primary variables: SBA loan interest rates, terms, loan amount, and guarantee fee.

The one factor we don’t account for is patience, which you’ll need when seeking an SBA loan.

SBA Loan Amounts

Several qualifying factors influence your loan amount: your financial projections, your credit score, how much financing you can afford, and what the loan will be used for, among others.

Typical ranges:

• SBA 7(a) Loans: $50,000–$5,000,000
• SBA 504 Loans: Up to $5,000,000 ($5.5 million for some projects)
• SBA Express Loans: $50,000–$350,000

SBA Loan Interest Rates

Depending on which SBA loan you choose, you may have a variable or fixed interest rate. The biggest impact on your specific SBA loan rate is your credit score—generally speaking, the higher the score, the lower the rate.

Another variable that affects SBA loan interest rates is the Federal Reserve. SBA loan rates are determined by the prime rate—the current lowest rate set by the Fed. That number can change (and when it does, you hear the news reports about it).

As of October 30, 2019, the Market Prime Rate is 4.75%, giving us the following interest rate ranges for SBA loans:

• SBA 7(a) Loans: 7–9.5%
• SBA 504 Loans: It’s complicated but estimate 3.56–7.15%
• SBA Express Loans: 9.25–11.25%

SBA Loan Term Lengths

Term lengths vary by SBA loan. For example, an SBA Express loan typically has a 10-year term, while a 504 loan can have a term of 20–25 years.

• SBA 7(a) Loans: 10–25 years
• SBA 504 Loans: 10–25 years (depending on what the loan is for)
• SBA Express Loans: 10 years

SBA Loan Guarantee Fee: How It Works

SBA loans over $150,000 include a modest guarantee fee. Here’s how it works: the SBA requires each lender to pay a fee in exchange for the SBA’s backing of your loan. The lender pays this fee, then typically passes the cost back to you. The fee will be spread over your monthly payments for the cost of your loan. The guarantee fee will vary depending on how much of your loan the SBA is backing.

Other Factors That Influence Your Payments

There’s no cost or obligation to compare SBA loan options and apply through Lendio, but many lenders will charge you application fees. If you’re shopping around, avoid surprises by asking about application fees.