Bank first lien
About 50% of the project. A conventional loan; the bank sets its own rate, amortization, and term.
SBA loan calculator, 7(a) and 504.
Enter the amount, rate, and term of a 7(a) loan and the calculator returns the monthly payment, the upfront guaranty fee on the FY2027 schedule, and total interest. Switch to 504 to see the bank loan, the CDC debenture, and your down payment as one combined payment. Nothing you type is saved.
SBA loan
calculator.
Principal and interest at the rate you enter. Nothing is saved.
How 7(a) payments
are calculated.
A fixed monthly amount that pays principal and interest over the term.
A 7(a) payment is standard amortization: the loan amount, rate, and term set one monthly figure, and each payment pays that month's interest first and the rest comes off principal. Terms run up to 10 years for working capital and equipment and up to 25 years for real estate. There is no balloon; the loan pays to zero.
Most 7(a) loans carry a variable rate: a base rate, usually prime, plus a lender spread that the SBA caps by loan size. The caps below come from the SBA 7(a) program page. The maximum 7(a) loan is $5 million, with the SBA guarantee at 85% on loans of $150,000 or less and 75% above that, capped at $3.75 million.
| Loan size | Maximum spread over the base rate |
|---|---|
| $50,000 or less | Base rate + 6.5% |
| $50,001 to $250,000 | Base rate + 6.0% |
| $250,001 to $350,000 | Base rate + 4.5% |
| Over $350,000 | Base rate + 3.0% |
The guaranty fee
in FY2027.
One-time, upfront, and back on the statutory schedule.
Every 7(a) loan carries an upfront guaranty fee. For FY2027, which covers loans approved from October 1, 2026 through September 30, 2027, SBA Information Notice 5000-881797 keeps the statutory schedule and adds one new break: manufacturers, certain food supply chain businesses, and businesses in areas the SBA classifies as rural pay 0% on loans of $700,000 or less. Two details trip people up. The bracket is set by the total loan amount, but the percentage is charged on the guaranteed portion, so a $500,000 loan pays 3% of $375,000, which is $11,250. And the fee is usually financed into the loan rather than paid at closing, which nudges the payment up.
| Total loan amount | Upfront fee |
|---|---|
| $150,000 or less | 2.0% of the guaranteed portion |
| $150,001 to $700,000 | 3.0% of the guaranteed portion |
| Above $700,000 | 3.5% of the guaranteed portion up to $1 million, plus 3.75% on the guaranteed portion above $1 million |
| Manufacturers (NAICS 31 to 33), certain food supply chain businesses, and rural businesses, loans of $700,000 or less | 0% |
Lenders also pay the SBA an annual service fee of 0.55% on the outstanding guaranteed balance. That is the lender's cost and it is not billed to you as a line item, though it shapes the rate they offer.
How the 504
structure works.
Three pieces, one project: owner-occupied real estate or heavy equipment.
CDC debenture
Up to 40%, backed by the SBA. Fixed rate for 10, 20, or 25 years, and it fully amortizes.
Your down payment
10% on a standard project. 15% for a startup or a special-use building. 20% when it is both.
The CDC debenture is capped at $5 million, or $5.5 million for small manufacturers and certain energy projects, per the SBA 504 program page. Its rate is fixed for the full term, pegged to an increment above the 10-year Treasury when the debenture is sold. The bank piece is a conventional loan and may carry its own balloon, so ask about both when you compare quotes.
7(a) vs 504
at a glance.
7(a) is the general-purpose loan. 504 is built for buildings and equipment you will occupy and use.
| Feature | SBA 7(a) | SBA 504 |
|---|---|---|
| Best for | Working capital, acquisitions, general business needs | Owner-occupied real estate and heavy equipment |
| Maximum size | $5 million loan, $3.75 million guarantee | CDC debenture up to $5 million, $5.5 million for small manufacturers and some energy projects |
| Structure | One loan with a 75% to 85% SBA guarantee | About 50% bank, up to 40% CDC, 10% or more down |
| Rate | Usually variable: prime plus a capped spread | Bank piece varies; the CDC debenture is fixed |
| Down payment | Usually 10% on startups and complete changes of ownership | 10%, rising to 15% or 20% for startups and special-use property |
| Balloon | None, the loan fully amortizes | None on the debenture; the bank piece may have one |
What lenders check
after the payment math.
A payment you can afford is the starting point. Three more checks decide the approval.
Debt service coverage
SOP 50 10 8.1 keeps a 1.15x floor for standard 7(a) loans and 1.10x for 7(a) Small loans of $350,000 or less that are not business purchases. From October 1, 2026, buying a business (an initial acquisition or owner buyout) needs 1.25x on the last fiscal year or a two-year average, and projections no longer count toward it. Most lenders want 1.25x or better either way. Run the deal through the DSCR calculator before you apply.
Equity injection
Startups and most business purchases need at least 10% of total project cost from you. Under SOP 50 10 8.1, the 10% on an initial acquisition cannot be reduced; on an expansion or owner buyout the lender may reduce or waive it if the business stays liquid, and ESOP purchases are exempt. A seller note on full standby plus small outside investors can cover no more than half of it.
Personal financial statement
Every owner of 20% or more signs SBA Form 413. The lender reads it for liquidity after closing and for the guarantee you are giving. The Form 413 walkthrough covers every section.
The income, assets, and liabilities that shape the approval are the same lines SBA Form 413 asks for. StatementsReady fills the 413 from synced balances, with every section and the totals tied out, in about 8 minutes. Garrett Pierson is the founder of StatementsReady and a licensed commercial real estate agent in Utah. He owns commercial property himself, so he fills out the same lender paperwork he writes about.
Common questions.
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What is the monthly payment on a $500,000 SBA 7(a) loan?
At 10.5% over 10 years, a $500,000 7(a) loan costs about $6,747 a month. A real estate 7(a) loan can amortize over 25 years, which brings the payment down; a higher rate pushes it up. Enter your own rate and term in the calculator for an exact figure.
What is the SBA guaranty fee in 2026?
For loans approved from October 1, 2026 (FY2027, SBA Notice 5000-881797), the upfront fee follows the statutory schedule. The bracket is set by the total loan amount (2% up to $150,000, 3% from $150,001 to $700,000, 3.5% above $700,000) and the percentage is charged on the guaranteed portion only, plus 3.75% on any guaranteed portion above $1 million. Manufacturers, certain food supply chain businesses, and businesses in rural areas pay 0% on loans of $700,000 or less. Loans approved before October 1, 2026 used the FY2026 notice, where only small manufacturers got the waiver, on loans up to $950,000.
Can I finance the SBA guaranty fee into the loan?
Yes. Most borrowers roll the one-time fee into the loan balance instead of paying it at closing, then repay it over the term. Financing it raises the loan amount and the monthly payment a little. The toggle in the calculator shows both versions.
How much is the down payment on an SBA 504 loan?
A standard 504 project needs 10% from you, with a bank first lien covering about 50% and the CDC debenture up to 40%. The down payment rises to 15% for a startup or a special-use property and to 20% when the project is both.
What are the maximum SBA 7(a) loan amount and term?
The 7(a) maximum is $5 million, with the SBA guarantee capped at $3.75 million. Terms run up to 10 years for working capital and equipment and up to 25 years for real estate.
What credit score do I need for an SBA 7(a) loan?
Since March 1, 2026 the SBA sets no minimum SBSS score for 7(a) small loans (Procedural Notice 5000-875701). Creditworthiness is the lender's call. Lenders still pull personal and business credit, so a strong score helps.
Does the calculator include the 504 CDC fees?
The 504 tab models principal and interest on the bank loan and the debenture at the rates you enter. CDC processing and SBA fees are usually financed into the debenture, so enter the effective rate your CDC quotes to see the all-in payment.
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