SBA Loan Calculator
Calculate your SBA loan monthly payment, guarantee fees, and total borrowing cost for 7(a), 504, and Microloan programs. Compare SBA vs conventional financing side by side — free, private, and instant.
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How SBA Loans Work in 2026
The U.S. Small Business Administration (SBA) does not lend money directly to small businesses. Instead, SBA sets guidelines for loans made by its partnering lenders — banks, credit unions, and non-profit organizations — then guarantees 75 to 85 percent of the loan principal against default. This guarantee reduces lender risk and allows them to offer lower interest rates and longer repayment terms than most conventional business loans.
As of May 2026, SBA interest rates are tied to the Wall Street Prime Rate (currently ~8.5%). For SBA 7(a) loans, variable rates run Prime plus 2.25% to 4.75%, translating to roughly 10.75–13.25% depending on loan size and term. Fixed rates are available but slightly higher. All rates and program caps are sourced from sba.gov and should be verified with a lender before application.
SBA 7(a) vs 504 vs Microloan Comparison
The three most common SBA programs each serve different business needs:
- SBA 7(a) Loan: The flagship program. Borrow up to $5 million for working capital, equipment, real estate, or refinancing existing debt. Terms up to 10 years for working capital, up to 25 years for real estate. The SBA guarantees up to 85% for loans under $150K, and 75% for larger amounts. Guarantee fees range from 0% (loans under $150K) to 3.75% of the guaranteed portion for loans above $700K.
- SBA 504 Loan: Specifically for major fixed assets — commercial real estate, heavy equipment, construction. Borrow up to $5.5 million (or $5M for certain manufacturing/energy projects). Structured as two loans: a bank covers ~50%, a Certified Development Company (CDC) covers ~40% at a fixed SBA rate, and you put in 10–20% down. This down payment requirement is factored into the calculator above.
- SBA Microloan: For startups and very small businesses. Borrow up to $50,000 with terms up to 6 years. Rates typically run 8–13%. These loans come through SBA-designated nonprofit intermediary lenders, not commercial banks. Average microloan is approximately $13,000 per SBA data.
SBA Loan Eligibility Requirements
To qualify for most SBA loan programs in 2026, your business must meet these core criteria according to sba.gov:
- For-profit operation: Nonprofits do not qualify for most SBA loan products.
- Size standards: Meets SBA definition of "small business" — typically fewer than 500 employees or annual revenue under $7.5 million (varies by NAICS industry code).
- U.S.-based: Operates and is physically located in the United States or its territories.
- Credit standards: Most SBA-approved lenders require a personal credit score of 650+ for 7(a) loans, though some lenders accept lower scores with strong business financials. Microloans may accept 580+.
- Collateral: Lenders typically require collateral for loans above $25,000 — personal assets, equipment, or real estate may be pledged.
- Owner equity injection: For 504 loans, a 10–20% down payment is required. For 7(a) loans, equity injection requirements vary by lender.
- Startups: SBA Microloans and some 7(a) programs are available to new businesses, but startups face higher scrutiny and may need a strong business plan, industry experience, and personal assets as collateral.
Last updated: May 2026. SBA program rates and limits may change — verify current terms at sba.gov before applying.