SBA Loan Calculator
Estimate the monthly payment, annual debt service, and total interest on an SBA 7(a) loan to buy a business. Adjust the down payment, rate, and term to see how the deal pencils out, and add cash flow to check coverage.
Illustrative only, not a financing offer. Actual terms vary by lender, deal structure, and buyer profile. SBA 7(a) rates are typically variable (around prime plus 2.75%).
Financing an acquisition with an SBA 7(a) loan
The SBA 7(a) program is the most common way to finance a main-street business purchase. With as little as 10% down, a buyer can borrow up to 90% of the price over a 10-year term, which is what makes buying a profitable small business achievable without all-cash. The trade-off is the monthly payment: the business has to generate enough cash flow to cover it and still leave the new owner a living.
Use this calculator to pressure-test a deal before you dig in. Enter the asking price, move the down payment and rate, and watch the payment and coverage ratio update. If the debt service coverage ratio drops below about 1.25x, most lenders will hesitate, and you will feel the squeeze too.
Frequently asked questions
How much down payment does an SBA 7(a) loan require?
SBA 7(a) acquisition loans typically require a 10% equity injection, so the loan can finance up to 90% of the purchase price. Lenders may ask for more on goodwill-heavy deals.
What interest rate do SBA 7(a) loans charge?
Most 7(a) loans carry a variable rate priced at the prime rate plus a spread (often around 2.75%). This calculator lets you model any rate to see how it changes the payment.
How long are SBA 7(a) loan terms?
Business acquisitions are usually amortized over 10 years. Loans that include real estate can stretch to 25 years, which lowers the monthly payment.
Is this an official SBA quote?
No. It is an illustrative estimate. Actual terms come from an SBA-approved lender based on the business, your experience, and how the deal is structured.
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