Business Loan Calculator
Calculate monthly payments and compare SBA 7(a) loans vs conventional business loans.
Loan Details
Monthly Payment
$2,968
Total Interest
$106,105
Total Cost
$361,105
Effective APR
4.49%
SBA 7(a) vs Conventional
| Feature | SBA 7(a) | Conventional |
|---|---|---|
| Monthly Payment | $2,968 | $3,167 |
| Total Interest | $106,105 | $130,027 |
| Fees | $6,169 | $2,500 |
| Total Cost | $362,274 | $382,527 |
Qualification Requirements
- SBA 7(a) requires a personal credit score of 680+ for most lenders.
- Must be a for-profit business operating in the US.
- Max SBA 7(a) loan amount is $5 million.
- Typically requires 10-20% down payment from the borrower.
Disclaimer
Estimates only. SBA loan terms, fees, and eligibility vary by lender. Visit SBA.gov for details.
SBA 7(a) vs Conventional Business Loans
| Feature | SBA 7(a) | Conventional |
|---|---|---|
| Max Loan Amount | $5 million | Varies by lender |
| Interest Rates | Prime + 2.25-2.75% | 6-13%+ |
| Terms | Up to 25 years (real estate) | 1-10 years typical |
| Down Payment | 10-20% | 10-30% |
| Guarantee Fee | 2-3.5% of guaranteed amount | None |
| Approval Time | 30-90 days | 1-7 days (online) |
How to Qualify for an SBA Loan
SBA loans require good credit (680+ preferred), a solid business plan, adequate collateral, and typically 2+ years in business. You must be a for-profit business operating in the US, have invested your own equity, and have exhausted other financing options. The SBA guarantees 75-85% of the loan, reducing the lender's risk.
Other SBA Loan Programs
Besides 7(a), the SBA offers microloans (up to $50,000), 504 loans for real estate and equipment (up to $5.5 million), and disaster loans. The SBA Express program provides faster approvals (within 36 hours) for loans up to $500,000 but with lower guarantee rates.
SBA — Loan Programs→Frequently Asked Questions
What credit score do I need?
Most SBA lenders want 680+, though some accept 650. For conventional online lenders, you may qualify with as low as 500-600 but at higher rates. The higher your credit score, the better your rate and terms.
Can I get a business loan for a startup?
It's harder but possible. SBA microloans and some community lenders fund startups. You'll need a strong business plan, personal credit, and possibly collateral. Many startups rely on personal savings, credit cards, or friends/family initially.
See also: Break-Even Calculator and Startup Cost Calculator.