SBA 7(a) Loan Calculator 2026
Your SBA 7(a) loan payment with the FY2026 upfront guaranty fee (2% / 3% / 3.5–3.75%, or waived for veterans and small manufacturers), total interest, effective APR including fees, the 0.55% lender service fee, debt service coverage and prepayment rules.
| SBA guaranty | — |
|---|---|
| Upfront guaranty fee | — |
| Fee financed → total loan | — |
| Monthly payment | — |
| Total interest over the term | — |
| Effective APR including fees | — |
| Annual service fee (paid by the lender) | — |
| Debt service coverage | — |
| Prepayment penalty | — |
In short
SBA 7(a) loans run up to $5,000,000 at variable rates of prime plus 2.25–6.5% with terms of 10 years (working capital, equipment) or 25 years (real estate). FY2026 upfront guaranty fees are 2% of the guaranteed portion for loans up to $150,000, 3% to $700,000, and 3.5% up to $1 million of guaranteed amount plus 3.75% above — waived for veteran-owned SBA Express loans and small manufacturers — and can be financed; prepayment penalties apply only to terms of 15+ years.
Who this is for: US small-business owners budgeting an SBA 7(a) loan for acquisition, expansion or working capital.
SBA 7(a) loans: fees, rates and terms
| Gross loan (term over 12 months) | Upfront guaranty fee (FY2026) |
|---|---|
| $150,000 or less | 2% of the guaranteed portion (85% guaranty) |
| $150,001 – $700,000 | 3% of the guaranteed portion (75% guaranty) |
| $700,001 – $5,000,000 | 3.5% of the guaranteed portion up to $1,000,000, 3.75% above |
| Any amount, term ≤ 12 months | 0.25% of the guaranteed portion |
| Veteran-owned SBA Express; small manufacturers ≤ $950,000 | $0 |
- Rates: variable loans are pegged to prime; maximum spreads are 6.5% under $50,000, 6.0% to $250,000, 4.5% to $350,000 and 3.0% above. Fixed rates run higher.
- Terms: 10 years for working capital, equipment and business acquisition; 25 years for real estate — long terms are the main reason SBA payments are affordable.
- Other costs: packaging fees (capped), closing costs, appraisals, and a 0.55% annual service fee the lender pays on the guaranteed balance.
- Alternatives: SBA Express (up to $500,000, faster, 50% guaranty), 504 loans for real estate and heavy equipment (fixed-rate debenture), microloans up to $50,000.
See also: Business Valuation Calculator.
Assumptions
- Guaranty 85% up to $150,000, 75% above; upfront fee per the FY2026 tiers on the guaranteed portion, financed into the loan.
- Fully amortising payment at the entered rate; effective APR solved from the payment against the net amount (loan − packaging).
- DSCR = monthly cash flow ÷ payment; prepayment rule shown for terms ≥ 15 years.
Worked example
Guaranty 75% = $375,000; upfront fee 3% × $375,000 = $11,250, financed → loan $511,250. Payment $6,615 a month; total interest about $282,600 over ten years; effective APR including the fee and packaging about 10.2%. DSCR 9,000 ÷ 6,615 = 1.36 — comfortably above the 1.25 most lenders want. No prepayment penalty on a 10-year term.
Frequently asked questions
What is the SBA guarantee fee in 2026?
2% of the guaranteed portion for loans up to $150,000, 3% to $700,000, and 3.5% up to $1 million of guaranteed amount plus 3.75% above — waived for veteran-owned SBA Express loans and small manufacturers.
What interest rate do SBA 7(a) loans charge?
Variable rates of prime plus 2.25–6.5% depending on size — roughly 9–13% at a 6.75% prime — or fixed rates somewhat higher. The rate is negotiated with the lender within SBA maximums.
How long does SBA approval take?
Typically 30–90 days for standard 7(a); SBA Express and Preferred Lender Program banks can close in 2–4 weeks.
Is there a prepayment penalty?
Only on loans with terms of 15 years or more, and only if you prepay 25%+ of the balance in the first three years (5%, 3%, 1%).
What is the difference between 7(a) and 504?
7(a) is general-purpose with variable rates; 504 funds real estate and heavy equipment with a fixed-rate SBA debenture for 40% of the project and typically 10% down.
Can I use a 7(a) loan to buy a business?
Yes — business acquisitions are a core 7(a) use; expect a 10% equity injection, of which part can be seller financing on standby.
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