Estimate monthly payments, SBA guaranty fees, and total cost across the SBA 7(a), 504, and Microloan programs using current 2026 rate assumptions. Built to mirror how SBA-approved lenders structure deals.
Frequently Asked Questions
What is an SBA loan and how does it work?
An SBA loan is small business financing partially guaranteed by the U.S. Small Business Administration. SBA-approved lenders provide the capital; the SBA guarantees a portion to reduce lender risk, which typically yields longer terms and lower rates than conventional small-business financing.
What is the current SBA loan interest rate in 2026?
SBA 7(a) rates are tied to the Prime Rate plus a spread. In mid-2026, fully amortizing 7(a) loans over $50,000 typically price between 10.5%–13.0% APR. SBA 504 debenture rates run 6.5%–8.5%. Microloan rates from intermediaries fall between 8%–13%.
What is the difference between SBA 7(a), 504, and Microloan programs?
7(a) is the most flexible general-purpose program up to $5 million. 504 funds owner-occupied real estate and heavy equipment up to $5.5 million through a bank + CDC structure. Microloans cap at $50,000 through nonprofit intermediaries.
How are SBA guaranty fees calculated?
7(a) guaranty fees are tiered by loan amount and maturity. Loans under $1 million may carry reduced or zero upfront fees in FY2026; loans above $1 million face fees of 3.0%–3.75% of the guaranteed portion. 504 loans carry CDC processing and servicing fees. Microloans have no SBA guaranty fee.
How long does it take to get approved for an SBA loan?
SBA Express loans fund in 2–4 weeks. Standard 7(a) loans take 30–90 days. SBA 504 loans take 60–120 days. Microloans through intermediaries take 2–6 weeks.
What credit score do I need to qualify for an SBA loan?
Most SBA lenders look for 680+ personal FICO. The SBA uses a separate FICO SBSS score with a 155 minimum for 7(a) loans under $500,000. Lenders also evaluate 2+ years in business, 1.15×+ DSCR, collateral, and industry.
Can I use an SBA loan for any business purpose?
7(a) proceeds cover working capital, equipment, owner-occupied real estate, business acquisition, and debt refinance. 504 is restricted to fixed assets. Microloans cannot pay existing debts or buy real estate.
What is the SBA down payment requirement?
7(a) typically requires 10–20% on business acquisitions and 10–15% on real estate. 504 requires a minimum 10% for established businesses, 15–20% for special-purpose properties or startups. Working-capital 7(a) usually requires no cash down.
Are SBA loans worth it compared to conventional financing?
SBA loans offer the longest terms (up to 25 years for real estate) and competitive rates, dramatically lowering monthly payments versus a 3–5 year conventional loan. The tradeoff is paperwork, slower funding, and guaranty fees on larger loans.
Do I need collateral for an SBA loan?
SBA policy requires lenders to take available collateral for 7(a) loans over $50,000, but loans cannot be denied solely for lack of collateral. 504 loans are fully secured by the financed asset. Microloans typically require collateral and a personal guaranty.
How does this SBA loan calculator estimate payments?
It uses a standard amortizing formula based on loan amount, estimated APR, and term, then adds the program-specific SBA guaranty fee (typically financed into the loan). Actual SBA loans may include additional fees — confirm full cost with your lender.
Can I prepay an SBA loan early?
Most SBA loans allow prepayment. 7(a) loans with 15+ year maturities have declining prepayment penalties in years 1–3 (5/3/1%) if you prepay over 25% in a single year. 504 loans have declining penalties over 10 years. Microloans typically have no penalty.