SBA Loan Calculator

The SBA guarantee fee is a one-time upfront fee charged by the SBA to the lender, who almost always passes it to the borrower. The fee is based on the guaranteed portion of the loan (not the full loan amount) and varies by size. For loans of $150,000 or less: the fee is 2% of the guaranteed portion. For loans between $150,001 and $700,000: 3%. For loans between $700,001 and $5,000,000: 3.5% on the first $1M guaranteed and 3.75% on the amount above $1M.

On a $500,000 SBA 7(a) loan with a 75% guarantee ($375,000 guaranteed), the fee is $11,250 (3% x $375,000). This fee can be financed into the loan rather than paid upfront. SBA microloans do not carry a guarantee fee, and the SBA periodically offers fee reductions or waivers for smaller loans during economic stimulus periods.

Eligibility requirements for SBA loans include: the business must be for-profit, operating in the United States, owner-operated with personal equity invested, and unable to obtain credit elsewhere on reasonable terms. Size standards vary by industry but generally cap at 500 employees for manufacturing and $8.5-$47 million in average annual receipts for services. Borrowers must have no delinquent federal debt, no recent bankruptcies (typically within 3 years), and a personal credit score of at least 680+ for most lenders (some accept 650+). Business must have been operating for at least 2 years for most programs, though startups can qualify with a strong business plan and personal guarantees.

The SBA loan application process begins with SBA Lender Match (lendermatch.sba.gov), which connects borrowers with SBA-approved lenders in their area within 2 business days. Alternatively, work with an SBA Preferred Lender — these banks have delegated authority to approve loans without individual SBA review, significantly accelerating the process.

Required documentation typically includes: SBA Form 1919 (Borrower Information Form), 3 years of business and personal tax returns, year-to-date profit & loss statement and balance sheet, business plan (especially for startups), personal financial statement (SBA Form 413), business licenses and registrations, and lease agreements or property information. The SBA also reviews your debt service coverage ratio (DSCR), typically requiring 1.25x or higher — meaning net operating income must be at least 25% above annual debt payments.