SBA loan payment calculator
Planning to buy a business with an SBA loan? Enter the price, your down payment, the rate and the term. See the monthly payment and what the lender will want your business to earn.
How SBA loans for buying a business work
The SBA does not lend the money. It guarantees part of a loan made by a bank or other lender, which makes lenders more willing to finance a business purchase. The most common program for buying a business is the 7(a) loan, up to $5 million, with a term of up to 10 years for a purchase and up to 25 years when real estate is included.
The 504 program is for buying real estate and major equipment. It is usually split between a bank loan, a loan from a community development company, and a down payment from you.
Lenders look at three things: how much of your own money goes in, how much the business earns compared with the payment, and your credit and experience. This calculator covers the first two.
Work you can look at
Questions people ask
What interest rate should I enter?
Use the rate your lender quotes. SBA 7(a) rates are usually the prime rate plus a spread that depends on the loan size and term, so they change over time. The 10.5% shown is only an example.
How much down payment does an SBA loan need?
For buying a business, lenders generally require at least 10% of the project cost in cash or equity. A seller note can sometimes count toward part of it. Rules vary by lender and change, so ask the lender.
What is the longest SBA loan term?
Up to 10 years for a business purchase, equipment or working capital, and up to 25 years when the loan is mainly for real estate.
Does this include the SBA guarantee fee?
Not unless you enter it under fees rolled into the loan. The SBA charges an upfront guarantee fee on most 7(a) loans, and the amount depends on the loan size. Your lender will give you the exact figure.
Is this financial, legal or tax advice?
No. It is a free estimate to help you plan and to start a conversation with your lender, accountant or advisor. Check the real figures with them before you decide.
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This is an estimate for planning, not financial, legal or tax advice.