SBA Loan Calculator

An SBA 504 loan is two loans on one project. A bank or credit union makes a first-lien loan for about 50% of the cost, a Certified Development Company makes a second-lien loan for up to 40% funded by an SBA-guaranteed debenture, and the borrower injects at least 10%. The injection rises to 15% for a new business (in operation two years or less) or a special-purpose property such as a hotel, car wash, or bowling alley, and to 20% when both apply; the CDC share drops to 35% or 30% to make room.

The CDC portion is priced at a monthly debenture sale tied to Treasury yields. At the September 10, 2026 sale, CDCs published fee-inclusive rates of about 6.54%for 25-year loans, 6.53% for 20-year loans, and 6.60% for 10-year loans. One-time fees of roughly 3% of the debenture (SBA's 0.5% guaranty fee, a 0.25% funding fee, a CDC processing fee of up to 1.5%, closing costs, and an underwriter's fee) are normally financed into it. The bank loan's rate and term are negotiated with the bank, and it must run at least 10 years when the 504 portion runs 20 or 25 years.

Worked example: a $2,000,000 building financed with a 25-year 504 loan

Assumptions: the bank rate equals the 7.00% Prime Rate in effect since September 17, 2026, amortized over 25 years (actual bank quotes vary, and many banks use a 10-year term with a balloon); the CDC rate is the September 10, 2026 pricing for 25-year debentures; and the $824,000 debenture is $800,000 of project cost plus $24,000 of financed fees, assuming $2,500 of closing costs. The same $1.8 million borrowed as a single 7(a) loan at the 10.00% maximum over 25 years would cost $16,357 a month, about $3,700 more, plus a $48,125 upfront guaranty fee.

To model the CDC piece in the calculator above, choose SBA 504, enter the $800,000 debenture as the loan amount, set the down payment to 0%, and use a rate near 6.5% for 25 years; the fee line then shows SBA's 0.5% upfront guaranty fee. Price the bank's first mortgage separately in the business loan calculator.

SBA caps the rate a lender can charge on 7(a) and SBA Express loans by loan size. Variable-rate caps are Prime plus a spread; fixed-rate caps use the Prime Rate on the first business day of the month plus a larger spread for small loans. Prime rose from 6.75% to 7.00%on September 17, 2026, after the Federal Reserve raised its target range to 3.75%-4.00%, so SBA's September maximums (built on 6.75%) are a quarter point below the figures here.

Monthly payments at the variable-rate maximums, with the upfront SBA guaranty fee for terms over 12 months (lenders can charge less than the cap, and 25-year terms are for real estate):

The fee column uses the fiscal 2026 and 2027 tiers. From October 1, 2026, loans of $700,000 or less to manufacturers, listed food supply chain businesses, and rural businesses pay no upfront fee.

The SBA guaranty fee (upfront fee) is a one-time charge on the guaranteed portion of a 7(a) loan, not the full loan amount. The lender pays it to SBA and usually passes it to the borrower, who can finance it into the loan. For loans approved from October 1, 2025 through September 30, 2027 with terms over 12 months, the tiers are 2% of the guaranteed portion for loans of $150,000 or less, 3% for $150,001 to $700,000, and 3.5% of the guaranteed portion up to $1 million plus 3.75% above that for loans of $700,001 to $5,000,000. Loans with terms of 12 months or less pay 0.25%.

On a $500,000 SBA 7(a) loan with a 75% guaranty ($375,000 guaranteed), the fee is $11,250 (3% x $375,000). The second tier starts once the guaranteed portion passes $1 million: a $2,000,000 loan has a $1,500,000 guaranteed portion, so the fee is 3.5% of $1,000,000 plus 3.75% of $500,000, or $53,750. The calculator above adds the fee when the Include SBA Guarantee Fee box is checked, using the 50% guaranty for SBA Express loans and SBA's 0.5% fee for 504 loans.

Manufacturers paid no upfront fee on loans of $950,000 or less in fiscal 2026; for loans approved from October 1, 2026, the 0% fee covers loans of $700,000 or less to manufacturers, listed food supply chain businesses, and businesses in rural areas, and SBA Express loans to veteran-owned businesses also pay nothing (SBA Information Notices 5000-872051 and 5000-881797). Lenders separately pay SBA an annual service fee of 0.55% of the guaranteed balance, which they may not pass on to the borrower. For 504 loans approved from October 1, 2026, SBA charges 0.5% of the debenture up front and 0.203% a year, both waived for manufacturers, food supply chain businesses, and rural businesses. SBA microloans do not carry a guaranty fee.

Eligibility requirements for 7(a) and 504 loans: the business must be for-profit, operate in the United States, meet SBA's size standard for its industry (or the alternative standard of no more than $20 million in tangible net worth and $6.5 million in average net income after taxes over the last two fiscal years), and show it cannot get the same credit elsewhere on reasonable terms. Since March 1, 2026, 100% of direct and indirect owners must be U.S. citizens or U.S. nationalswhose principal residence is in the United States, and lawful permanent residents can no longer hold any share (SBA Policy Notice 5000-876441). Every owner of 20% or more guarantees the loan, and the business and its owners cannot be delinquent on federal debt. Startups (one year or less in business) and complete changes of ownership must inject at least 10% of the project cost on a 7(a) loan; entering that as the down payment in the calculator shows the financed amount, payment, and fee. Lenders add their own credit score, collateral, and time-in-business standards on top of SBA's rules.

Most borrowers start with SBA Lender Match (sba.gov/loans/lender-match), which sends contacts from interested SBA lenders within two business days. Preferred Lenders and SBA Express lenders can approve loans under delegated authority without a separate SBA review, which is usually the fastest route. For 504 loans, the CDC packages the application and SBA approves the debenture, while the bank approves its own first mortgage.

Required documentation typically includes SBA Form 1919 (Borrower Information Form), a personal financial statement on SBA Form 413 for each owner of 20% or more, business financial statements or tax returns for the last 3 years plus IRS tax transcripts, a year-to-date profit and loss statement and balance sheet, a debt schedule, projections for startups and acquisitions, and SBA Form 1244 for 504 loans. Lenders must show a debt service coverage ratio (DSCR) of at least 1.15, meaning operating cash flow at least 15% above all debt payments including the new SBA loan; under SOP 50 10 8.1, effective October 1, 2026, business acquisitions and owner buyouts need 1.25.